KKR & Co (KKR) has announced a definitive agreement to acquire the remaining 37 per cent of US insurance firm Global Atlantic for around $2.7 billion.

KKR was already the majority shareholder in Global Atlantic, and under the terms of the agreement, KKR will pay Global Atlantic’s minority shareholders an amount in cash equal to one times Global Atlantic’s book value with certain adjustments.

KKR has served as Global Atlantic’s asset manager since 2021, a period in which the insurer’s assets under management grew from $72 billion in 2020 to $158 billion in 2023.

Global Atlantic attributed the growth to benefitting from the scale of KKR’s asset management businesses in meeting its investment needs while maintaining a focus on risk management and continuing to deliver market-leading returns.

The companies’ said that their strategic partnership has proven to be an important source of capital for Global Atlantic and a driver of international growth, with Global Atlantic leveraging KKR’s global reach to establish new business relationships in Hong Kong, Singapore and Japan.

The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions.

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