Warwick Re completes $500m reinsurance transaction

Bermuda-based long term re/insurer Warwick Re has closed its first quota share reinsurance agreement. 

The Class E re/insurer said it had closed the $500 million transaction to support Just Group plc, a leading UK BPA insurer in December, 2023.

Warwick Re aims to provide innovative reinsurance solutions to cedants in the life insurance, annuity and pension sectors through both in-force and flow agreements.  

"We are delighted to offer our significant reinsurance and asset management capabilities to further support Just's BPA business" said Chris McGlashan, founder and CEO of Warwick Re.  "Our innovative, collateralised structures address a growing need in the UK BPA market through reinsuring asset and longevity risks at attractive pricing levels to support insurers' originations.  

"In addition to UK BPA, we look forward to working with US and European clients in the life insurance, fixed annuity and pension risk transfer markets."

Just's Head of reinsurance relationships, Prashant Mehta commented: "We are pleased to have successfully reinsured both longevity and asset risk in this funded reinsurance transaction with Warwick Re.  

"This is Just's first deal with Warwick Re, and our third funded reinsurance deal over the last five years (2019-23). 

"Over the same period, cumulative ceded liabilities total circa £0.9 billion of funded reinsurance, out of a total defined benefit premium written of £11 billion.  We are delighted to add Warwick Re to our panel of reinsurers, thereby enhancing our reinsurance capabilities and further diversifying our funded and longevity reinsurance partners."

Warwick Re has investment grade ratings, including an Insurer Financial Strength (IFS) rating of "BBB" with Stable Outlook from Fitch Ratings.