Fortitude Re partner with Carlyle to launch sidecar to drive Asian growth
Bermuda-based reinsurer Fortitude Re has joined forces with global investment firm Carlyle to launch a reinsurance sidecar aimed at expanding their presence in Asia’s fast-growing life and annuity market.
Fortitude Carlyle Asia Reinsurance (FCA Re) is a Class E licensed Bermuda-domiciled reinsurer established to accelerate Fortitude Re’s growth in the Asian life and annuity market with more than $700 million in deployable capital, including equity and expected debt capacity.
FCA Re has secured equity commitments from Fortitude Re, Carlyle and a group of global institutional investors including T&D Insurance Group, AllianceBernstein, Shinhan Life and National Pension Service of Korea, among others.
FCA Re will initially assume a share of existing liabilities from Fortitude Re and will also reinsure a share of Fortitude Re’s future transactions in Asia.
Fortitude Re will serve as insurance sponsor and Carlyle will serve as asset management sponsor to FCA Re. Once its capital is fully deployed, FCA Re is expected to add approximately $10 billion of fee-earning assets under management to Carlyle.
Asia represents one of the most dynamic and attractive opportunities in global reinsurance today, driven by ageing demographics and a growing need for insurers to rethink how they manage capital, risk and long-duration liabilities.
Alon Neches (pictured right), CEO of Fortitude Re, said: “Fortitude Re has already reinsured approximately $15 billion in reserves on behalf of clients in Asia and we are dedicated to making further investments in the region. FCA Re will help us continue delivering solutions that drive our clients’ strategies forward.”
Brian Schreiber, partner at Carlyle and head of Carlyle insurance solutions, said: “FCA Re is a natural extension of Carlyle’s strategy to deliver integrated asset, capital and liability solutions to insurance clients worldwide. With Carlyle’s more than 25-year history and deep experience in Asia we are excited to continue to drive growth in the region.”
J.P. Morgan acted as financial advisor and Debevoise & Plimpton LLP acted as legal advisor to the sponsors and FCA Re.
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