Fortitude Re raises $500m via funding agreement-backed notes

Bermuda-based Fortitude Re has tapped the funding agreement-backed note market, securing $500 million for its Fortitude Life Insurance & Annuity Company (FLIAC).

The inaugural offering to institutional investors is scheduled to settle on October 6.

The funding agreement backed note market is the market for a type of asset-backed security where the notes are primarily secured by funding agreements issued by life insurance companies.

It provides a way for life insurers to raise cost-effective funding by accessing the capital markets and diversifying their funding sources beyond traditional institutional buyers.

The notes will be issued by Fortitude Global Funding, an unaffiliated Delaware statutory trust, and are backed by a funding agreement issued by FLIAC.

The notes carry ratings of BBB+ from Fitch and A3 from Moody’s, which are in line with FLIAC’s financial strength ratings.

Alan Stewart, group treasurer of Fortitude Re, said: “Entering this market aligns with our ongoing growth strategy. By diversifying our sources of capital, we reinforce the resilience of our balance sheet, unlock new avenues for growth, and continue delivering on our promise to provide long-term security and value to our stakeholders.”

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