Goldman Sachs Group Inc. (GS) agreed to sell a majority stake in
its U.K. pension insurance business, Rothesay Life, to a handful of
large investment groups, as the Wall Street firm adapts to stiffer
capital rules.
Goldman in August said it would likely sell a majority stake in
the insurance unit in the next 12 months, adding it to assets
slated to exit from its portfolio. Goldman founded Rothesay in 2007
to focus on the U.K. pension market, and the business had nearly
$10 billion in assets as of June.
Funds managed by Blackstone Group L.P. (BX) and Singapore's
sovereign wealth fund, Government of Investment Singapore Corp.,
will each acquire 28.5% of the shares, and Massachusetts Mutual
Life Insurance Co. will acquire a 7% stake.
Goldman will retain a 36% holding and remain Rothesay's largest
shareholder.
The sale comes as Goldman and its rivals continue to adjust to a
spate of new rules imposed on the industry since the financial
crisis.
Regulators have pushed the world's biggest banks to set aside
more capital to cover potential losses and have made it costlier to
hold on to their investments in other financial companies. The
rules have forced the banks to make tough choices.
Goldman sold a majority of its Americas reinsurance arm, Global
Atlantic Financial Group, to its clients in April. In May, the New
York securities firm moved to sell its remaining stake in
Industrial & Commercial Bank of China Ltd. (IDCBY, 1398.HK,
601398.SH).
Goldman's shares closed Monday at $159.77 and were inactive
premarket. The stock is up 25% so far this year.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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