Aspida acquires third-party offshore reinsurance platform F&G Re

Ares Management’s subsidiary Aspida has wrapped up its previously announced acquisition of F&G Reinsurance (F&G Re), a Bermuda-based life and annuity reinsurer.

F&G Re, which serves offers reinsurance solutions to third-party life and annuity firms, was acquired from FGL Holdings (F&G), which is a subsidiary of US-based title insurance company Fidelity National Financial.

The financial terms of the transaction were not disclosed by the companies.

Under the terms of the transaction signed in September 2020, Aspida will forge a flow reinsurance agreement with F&G related to the latter’s multi-year guaranteed annuity products.

As of 30 September 2020, F&G Re had around $2 billion in invested assets. The firm will continue to operate as a reinsurance provider based in Bermuda under the Aspida Re brand.

Through Ares Insurance Solutions (AIS), Ares Management said that it will remain focused on enhancing its capabilities to originate and handle insurance assets for scaling the platform of Aspida.

David Reilly – Ares Insurance Solutions Partner and Head said: “With support from Ares and the AIS team, Aspida is poised to execute on its organic and inorganic growth strategy seeking to capitalize on the attractive and sizable annuity and retirement market.

“We are excited by the opportunity to partner with insurance companies to help them efficiently meet their capital needs through our reinsurance offerings.”

Fidelity National Financial will use the proceeds from the F&G Re sale for general corporate purposes, which includes funding growth opportunities at F&G, an Iowa-based provider of deferred annuities.

F&G, which is made up of F&G Life Insurance, F&G Life Insurance Company of New York, and the third-party offshore reinsurance platform F&G Re, was acquired by Fidelity National Financial earlier this year for nearly $2.7 billion.

Fidelity National Financial and F&G took up the sale of the third-party offshore reinsurance platform to focus on the latter’s core retail franchise and also in growing its footprint in the bank and broker dealer channel.