Kuvare’s life & annuity reinsurance “sidecar” Kindley Re raises additional $250m

Kindley Re Ltd., a Bermuda-domiciled life and annuity reinsurance company established by Kuvare Holdings in partnership with global investment manager Davidson Kempner Capital Management LP has raised an additional $250 million of equity capital from institutional investors to expand its franchise.

Kuvare Holdings, a technology-enabled specialist in life and annuity insurance and reinsurance solutions, launched the sidecar-like venture back in 2023, after an initial $400 million capital raise.

Kindley Re brings a complementary source of capital from third-parties to help Kuvare expand its underwriting business, by co-investing alongside the parent into qualifying new life and annuity opportunities it has sourced.

To-date, Kindley Re has invested some of the initial fund raise by entering into reinsurance agreements with Kuvare, to participate in qualifying deals including flow reinsurance transactions and block reinsurance transactions.

That original capital raise supported reinsurance of U.S. and Asian liabilities, originated in partnership with Kuvare and now the new equity raise will enable Kindley Re to become even more useful to its parent, in providing a third-party capitalised source of companion reinsurance capacity.

Kindley Re has now raised $250 million of additional equity capital commitments, in a raise supported by a group of institutional investors across the U.S., Latin America, Europe, and Asia, the company has reported.

The capital raise is expected to support the strengthening of its ability to expand its reinsurance franchise and new growth opportunities alongside Kuvare.

Kindley Re Ltd. is a Class E licensed, Bermuda-domiciled life and annuity reinsurance company.

Its launch followed the trend for life and annuity re/insurers to launch sidecar-like reinsurance structures, that provide investors a way to tap into the returns of the life reinsurance asset class and augment the capacity of the re/insurance sponsor at the same time, all while leaning on third-party investor appetite.

Vehicles like Kindley Re enable the sponsoring entities to double-down on the the return drivers of their businesses, leveraging investor appetite for returns from the underwriting and investment side of re/insurance, while utilising third-party capital to support their stature in the reinsurance marketplace.

The life and annuity space is all about scale and stature with deal sizes particularly large, so structures like Kindley Re help life and annuity specialists increase their relevance with clients, help them access deals they may otherwise have been able to enter into, all while sharing the rewards with third-party investors.