AM Best removes Aspida Life Re from under review with developing implications

AM Best has removed Aspida Life Re from the status of under review with developing implications and affirmed its financial strength rating of A- (excellent) with a stable outlook.

Aspida Life Re was formerly known as F&G Reinsurance (Bermuda). It is a subsidiary of Aspida Holdings, which is an indirect subsidiary of Ares Management Corporation. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Aspida Re’s strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings were placed under review with developing implications on October 7, 2020, following the announcement that Fidelity National Financial and its subsidiary Fidelity & Guaranty Life Insurance Company would sell F&G Reinsurance to Aspida Holdings.

That transaction closed on December 18, 2020. Since then AM Best has assessed Aspida Re’s business strategy and capitalisation and determined that it will maintain a very strong level of risk-adjusted capitalisation, as measured by its capital adequacy ratio.

It noted that Aspida Re plans to use the investment expertise of its parent, Ares Management, a leading alternative investment manager with almost $200 billion of assets under management, to restructure the portfolio and improve investment yields.