Assured Guaranty enters annuity reinsurance with Warwick Re acquisition
Surety insurer Assured Guaranty has entered the annuity reinsurance market through the $158 million acquisition of Bermuda-based life and annuity reinsurer Warwick Re, which will be rebranded following the transaction.
The newly renamed Assured Life Re will reinsure fixed-term annuities and pension risk transfer annuities, leveraging Assured Guaranty’s established expertise in life reinsurance and its asset management capabilities. Dan Bevill has been named president of the rebranded reinsurer.
For certain of Assured Life Re’s reinsurance exposure, Assured Life Re’s obligations to the ceding life and annuity insurers will be covered by a guaranty issued by Assured Guaranty Re Overseas, its AA-rated affiliate, an innovation which enables it to stand out from other life and annuity reinsurers, the company said.
Warwick Re specialises in annuity reinsurance, including US multi-year guaranteed annuities (MYGA) and UK bulk purchase annuities (pension risk transfers, PRT), which are products Assured Life Re currently plans to reinsure.
“Assured Guaranty has over 40 years of experience as a financial guarantor and more than 20 years serving the life and annuity insurance sector,” said Dominic Frederico, president and CEO of Assured Guaranty. “Our deep understanding of the life and annuity reinsurance space, combined with our disciplined approach to risk management and our other core competencies, positions Assured Life Re to successfully participate in the annuity reinsurance market.”
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