KBRA Places Ratings of Kuvare Holdings and Key Operating Subsidiaries on Watch Developing Following Announcement of Transaction with Blue Owl
3 Apr 2024 | New York
KBRA places on Watch Developing the BBB issuer rating of Kuvare UK Holdings Limited and Kuvare US Holdings, Inc. (KUS) as well as the BBB- long term credit rating of KUS’ $225 preferred shares due 2051. In addition, KBRA places on Watch Developing the A insurance financial strength rating (IFSR) of Guaranty Income Life Insurance Company and United Life Insurance Company and the A- IFSR of Kuvare Life Re Ltd. and Lincoln Benefit Life Company. Collectively the companies are referred to as Kuvare.
The Watch Developing status reflects the uncertainty with respect to the near- and medium- term impact on Kuvare’s financial position, projected results, and business strategy considering the announcement earlier today that Blue Owl Capital Inc. (Blue Owl) made a long-term investment in Kuvare by purchasing $250 million preferred shares. In addition to the preferred equity investment, Blue Owl and Kuvare entered into investment management agreements (IMAs) that will allow Blue Owl to deploy up to $3 billion of Kuvare assets across Blue Owl’s existing investment platforms. In addition, Blue Owl has entered into a definitive purchase agreement to acquire Kuvare Insurance Services LP (dba Kuvare Asset Management (KAM)), a related entity to Kuvare and the current asset manager for the Kuvare companies. Upon closing of the KAM acquisition, Blue Owl will be allocated up to $20 billion of AUM, in aggregate, from the Kuvare companies. The IMAs will be additive to Blue Owl’s permanent capital base. The KAM acquisition is expected to close in the second or third quarter of 2024.
KBRA will evaluate the impact on the Kuvare companies’ ratings and outlooks and resolve the Watch Status over the medium term.
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