Japan Post Insurance plans to invest $2bn into a new reinsurance sidecar-like co-investment vehicle sponsored by US life, retirement and annuities insurance and reinsurance company, Global Atlantic Financial Group.
Global Atlantic established the Ivy Re reinsurance co-investment and sidecar-like structure in Bermuda in 2020, since when it has used this as a vehicle for channelling supportive third-party capital to a number of its major life reinsurance deals.
Japan Post Insurance sees this as an opportunity to deploy capital into a growth area of global life and annuity reinsurance markets, sourcing diversified reinsurance-linked returns to augment its business. The use of third-party investor capital in life and annuity reinsurance sidecars and co-investment structures are becoming increasingly prevalent, with growing numbers of major players leveraging the appetite of investors to participate in their businesses through efficient vehicles.