Resolution Life Holdings hired J.P. Morgan Asset Management to run its $12 billion fixed-income portfolio, said a Resolution spokesman.
Resolution Life, a specialist U.S. life insurance business, will also receive strategic support from J.P. Morgan Asset Management for implementation of its multimanager portfolio. Resolution Life expects to grow as additional insurance businesses are added. This month, it completed a deal to acquire Lincoln Benefit Life Co. — its first transaction.
In e-mailed comment to Pensions & Investments, the Resolution spokesman said the hire allows the insurer to stabilize operating costs while leveraging JPMAM’s expertise in investment management.
“Resolution Life does not plan on managing assets in-house in the near term,” the spokesman wrote. “We plan on employing a multimanager strategy and will use additional managers where appropriate.”
“This is important for us,” said Matthew Malloy, managing director and head of global insurance solutions at J.P. Morgan Asset Management, in an interview. “We have run insurance company portfolios for over 30 years, but it is not very often that a mandate of this size and complexity comes along.”
Mr. Malloy said the fixed-income portfolio includes both liquid and illiquid allocations. “(This deal) gives us immediate scale in a business that we have been actively looking to grow,” he said.