Sixth Street Announces $25 Billion Reinsurance Transaction with Principal Financial Group

February 3, 2022

Willkie represented Sixth Street in the transaction between an affiliate of Talcott Resolution and Principal.

On January 31, Sixth Street announced that a non-U.S. affiliate of its insurance platform Talcott Resolution Life signed a $25 billion reinsurance transaction with Principal Financial Group.

Under the terms of the transaction, the Talcott Resolution affiliate will reinsure approximately $25 billion of liabilities, comprised of $16 billion and $9 billion of retail fixed annuity and secondary guarantee universal life insurance liabilities, respectively, from Principal. Principal will continue to service and administer the policies of the reinsured blocks of business.

Sixth Street is a global investment firm with over $60 billion in assets under management and committed capital. Sixth Street invests in and offers solutions to companies in the insurance and reinsurance industry through its dedicated insurance affiliates as well as its $25 billion Sixth Street TAO platform.

Willkie previously represented Sixth Street in a $35 billion reinsurance transaction alongside Resolution Life to acquire blocks of insurance policy business from Allianz Life. The Firm also advised Sixth Street on the 2021 acquisition of Talcott Resolution from a consortium of investors.

The Willkie team was led by partners Robert Rachofsky, Michael Stern, Alexander Dye and Mark Proctor.