Talcott, Goldman Sachs launch $1bn Bermuda reinsurance sidecar West Grove Re

Talcott Financial Group and Goldman Sachs have launched West Grove Re, a Bermuda-domiciled reinsurance sidecar backed by approximately $1 billion in capital, expanding Talcott’s access to third-party funding to support the continued growth of its insurance and reinsurance platform.

The company has established West Grove Re in partnership with Goldman Sachs. The vehicle closed an approximately $1 billion capital raise comprising equity commitments from Talcott, Goldman Sachs Asset & Wealth Management (AWM) and its clients, together with a credit facility.

West Grove Re will participate in a quota share of certain Talcott-sourced US annuities in a structure designed to enhance the company's ability to deliver scalable, capital-efficient solutions across a broad range of liabilities.

The sidecar was established through Talcott’s open architecture asset management model and partnership approach, enabled by Sixth Street. Talcott will provide support services including actuarial, finance, compliance and risk management, while Goldman Sachs AWM will act as investment manager for the sidecar’s private asset strategies. Other third-party investment managers are expected to oversee the remainder of West Grove Re’s assets.

Imran Siddiqui, chief executive officer of Talcott, said: “Establishing West Grove Re is another important step in Talcott’s growth strategy, broadening our access to liabilities with varied costs of capital, while staying true to the strength of our platform as we continue to scale.

“Partnering with Goldman Sachs further validates the business we have been building since Sixth Street’s acquisition in 2021. By pairing our deep insurance expertise with Goldman’s access to client capital and private asset origination franchise, we are enhancing our ability to support the evolving needs of our partners and the broader insurance market.”

Vivek Bantwal, global co-head of private credit at Goldman Sachs Alternatives, added: “We are excited to invest alongside Talcott and our clients in this solution for the insurance marketplace. Our private credit business will bring a rigorous credit selection process, access to a deep sourcing and origination funnel through our investment bank, and our expertise in markets and risk management to this partnership.”

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