FGH parent and global reinsurance company, Fortitude Re, and investment firm Carlyle have announced the launch of reinsurance sidecar Fortitude Carlyle Asia Reinsurance (FCA Re).
announced the launch of reinsurance sidecar Fortitude Carlyle Asia Reinsurance (FCA Re).
FCA Re is a Class E licensed Bermuda-domiciled reinsurer established to accelerate Fortitude Re’s growth in the Asian life and annuity market. FCA Re will initially assume a share of existing liabilities from Fortitude Re and will also reinsure a share of Fortitude Re’s future transactions in Asia.
FCA Re has more than $700m in deployable capital, including equity and expected debt capacity. FCA Re has secured equity commitments from Fortitude Re, Carlyle and a group of global institutional investors including T&D Insurance Group, AllianceBernstein, Shinhan Life and National Pension Service of Korea.
Fortitude Re will serve as insurance sponsor and Carlyle will serve as asset management sponsor to FCA Re. Once its capital is fully deployed, FCA Re is expected to add approximately $10bn of fee-earning assets under management to Carlyle.
“Fortitude Re has already reinsured approximately $15bn in reserves on behalf of clients in Asia and we are dedicated to making further investments in the region,” said Fortitude Re CEO Alon Neches.
“FCA Re will help us continue delivering solutions that drive our clients’ strategies forward.”
Asia represents one of the most dynamic and attractive opportunities in global reinsurance today, driven by ageing demographics and a growing need for insurers to rethink how they manage capital, risk and long-duration liabilities.
J.P. Morgan Securities, LLC acted as financial advisor and Debevoise & Plimpton LLP acted as legal advisor to the sponsors and FCA Re.