Voya Financial Inc. has announced that it will be selling itsclosed block variable annuity and fixed indexed annuities businesses, with an eye toward makinga $1 billion stock buyback by June 30 of 2018.

According to a Nasdaq report, Voya will divest substantially all ofits CBVA segment, as well as its individual fixed and fixed indexedannuity business, through an agreement with aconsortium of investors led by affiliates of Apollo GlobalManagement, LLC, Crestview Partners and Reverence CapitalPartners.

The report says that the deal will allow Voya to focus on itshigher-growth, higher-return, capital-light retirement, investmentmanagement and employee benefits businesses.

Voya said it will divest Voya Insurance andAnnuity Company, the insurance subsidiary that has primarily issuedVoya’s variable, fixed and fixed indexed annuities.

VIAC will be acquired by Venerable Holdings, Inc., a newlyformed investment vehicle owned by the consortium.

In addition, Athene Holding, Ltd. and Voya also will participatein this consortium, with Voya having a 9.9 percent equity stake inVenerable.

Based on the terms of the agreement, Voya estimates that thetransaction will result in about $1.1 billion of value, including a$400 million ceding commission paid by Athene for Voya’s fixed andfixed indexed annuities business.

Voya expects more than $500 million in immediately deployablecapital, which is subject to change until closing, and intends touse the deployable capital for additional share repurchases beyondits $1 billion existing authorization.

In the report, Rodney O. Martin, Jr., chairman and chiefexecutive officer, Voya Financial, is quoted saying, “.. we expectto increase Voya’s quarterly operating earnings per share tobetween $1.10 and $1.20 within 12 months of the transactionclosing. ... We also will continue with our share-repurchase plans,including our intent to repurchase $1 billion of our common stockby June 30, 2018.”

The transaction is expected to close in Q2 or Q3 2018, subjectto customary closing conditions, including regulatoryapprovals.