(Reuters) — Goldman Sachs Group Inc. is seeking a buyer for a majority stake of its $1.4 billion reinsurance group, according to a copy of its January presentation to potential buyers that was viewed by Reuters.
Goldman is trying to sell 75% of Goldman Sachs Reinsurance Group, now renamed Global Atlantic, for around $1 billion, according to the presentation.
A Goldman Sachs spokesman declined to comment. The Insurance Insider first reported Goldman was looking to sell the reinsurance group.
The move to sell control of the reinsurance unit, which generates a steady stream of fees, comes less than a year after Goldman bought Ariel Re's Bermuda-based insurance and reinsurance operations in April. Banks including Goldman Sachs are looking to sell businesses they see as noncore to meet new capital requirements.
Global Atlantic is composed of a $950 million life and annuity business and a $450 million property and casual business.
Goldman reported net revenue of $1 billion in 2012 related to its reinsurance business, up from $880 million in 2011, in its fourth-quarter earnings release Wednesday morning, marking the first time the firm has broken out these figures.
Overall, Goldman said its fourth-quarter earnings nearly tripled, driven by big gains in stock and bond values, increased revenue from deal-making and lower compensation expenses.
The fifth-largest U.S. bank by assets reported earnings of $2.8 billion, or $5.60 per share, up from $978 million, or $1.84 per share, in the same period a year ago.