Investcorp buys Sunset Life, sets up Insurance Solutions unit

Investcorp hired Todd Fonner and Nathan Gemmiti, executives with experience at Blackstone and Apollo, respectively, to run its new venture providing investment guidance to life insurers.

Another global alternative asset manager has acquired a US life insurance company and created an “insurance solutions” group to assist other life/annuity companies transition to more sophisticated investment policies.

Investcorp, with $36.7 billion in assets under management, has financed the purchase of Sunset Life Insurance Company of America from Kansas City Life, and has established Investcorp Insurance Solutions platform, to provide investment management services to insurers.

To lead these businesses, Investcorp recruited executives with experience at asset managers with similar profit centers. It hired Todd Fonner as Chief Investment Officer of Investcorp Insurance Solutions. Fonner served as senior managing director, CIO North America, Blackstone Insurance Solutions, until 2020. 

According to an Investcorp release, Fonner helped launch the Blackstone Insurance Solutions platform in late 2017. He also has held CIO, Treasurer and Chief Risk Officer roles at RenaissanceRe Holdings, where he spent nearly 15 years of his career. 

Nathan Gemmiti will serve as CEO of Sunset Life. He came from where he was co-founder, COO and General Counsel of Knighthead Annuity and Life Insurance Company. Previously, he was an operating partner at Apollo Global Management, where he helped launch Athene, the life insurance and reinsurance company.

Sunset will outsource its investment management to Investcorp Insurance Solutions. On December 31, 2020, Sunset Life reinsured all of its then existing insurance business to Kansas City Life, who will provide all ongoing administration for such business.

In a November 2 press release, Kansas City Life said it expected to record a net gain of about $5.5 million on the sale of Sunset Life, which was founded in 1937 and acquired by Kansas City Life in 1974.

Sunset Life ceased writing new life and annuity business in the early 2000s. Kansas City Life reinsured 100% of the outstanding business of Sunset Life on December 31, 2020, and will continue to service all business issued prior to November 1, 2021. 

Investcorp has a presence in the US, Europe, India, China, Singapore, and countries in the Gulf Cooperation Council. It purchased Sunset Life through Bona Holdings, a subsidiary of Cordillera Holdings LLP, a new insurance-focused investment platform.

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