Allianz forms Bermuda life re/insurer

Global insurer Allianz has established a Bermuda-based life reinsurance platform called Sconset Re which will be used to exploit opportunities in the US. 

The sidecar will be capitalized through equity investments from high-quality institutional partners, including Voya and Antares. 

Sconset Re will specialise in assuming fixed indexed annuity product risk and initially will reinsure a $4 billion block of annuity liabilities and will enter into a forward flow agreement for $5-10 billion of new business. PIMCO, an investment management firm, will manage most of the investment portfolio.

Deutsche Bank acted as the sole financial advisor to insurer Allianz on the transaction, and also acted as the sole arranger of a debt financing facility to Sconset Re.

Deutsche Bank said in a release that Allianz sees the Sconset Re sidecar as representative of the opportunity it sees with its life and asset management business in the US.

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