life reinsurance sidecar

The life and annuity sidecar market in Bermuda has experienced rapid growth over the last several years, as insurers continue to scale up and expand beyond legacy blocks. However, Morningstar DBRS suggests that this momentum can also be viewed alongside the growth of rated feeder funds, as both structures highlight how insurance capital is increasingly […]

Chariot Reinsurance (Chariot Re), the Bermuda-based life and annuity reinsurance sidecar like company launched by MetLife, Inc. in partnership with investor General Atlantic, has closed an oversubscribed third capital raise of approximately $700 million in equity and debt financing, with backing from a group of leading institutional investors, including Chubb.

As use of third-party capital within life annuity reinsurance structures including sidecar vehicles increases, a new estimate from reinsurance broker Guy Carpenter, as reported by rating agency AM Best, suggests around one-third of capacity is now from third-party investor sources.

Wilton Re, a provider of in-force and reinsurance solutions, is partnering with Sun Life Financial Inc., to launch Windsor Life Re, a new U.S. and Bermuda based company that will initially act as a kind of life and annuity reinsurance sidecar for the company and is expected to deploy around US $900 million in capital.

Reinsurance Group of America (RGA) expects to have its first third-party capitalised life reinsurance sidecar Ruby Re fully-deployed this year and the company is already evaluating a second iteration of the structure, an executive has said.

A recent report from ALIRT Insurance Research suggests that steady growth amongst Bermuda reinsurers and sidecars are responsible for a significant portion of the U.S. life insurance sector’s expansion in recent years.

International life and annuity insurance specialist Talcott Financial Group (Talcott) has announced the launch of West Grove Re Ltd., a Bermuda based reinsurance sidecar structure that has been capitalised with approximately $1 billion after a fund-raise in partnership with Goldman Sachs.

France headquartered global reinsurance company SCOR has signed a memorandum of understanding (MOU) with Japanese insurer Japan Post Insurance on the establishment of a reinsurance investment structure, which will feature subject business from both companies and be invested into by Japan Post Insurance.

For KKR, with committed capital managed in life and annuity reinsurance sidecar structures under Global Atlantic rising rapidly for the investment giant in recent years, these third-party capitalised reinsurance strategies are an increasingly important component of the firm’s results.

According to a recent report from Fitch Ratings, partnerships between North American insurers and alternative investment managers are expected to continue to keep growing over the near term, particularly through sidecars and offshore reinsurance platforms.