The Ares Management subsidiary will enter into a flow reinsurance agreement with F&G pertaining to certain annuity products


Fidelity National Financial wraps up sale of F&G Re to Aspida. (Credit: Tumisu from Pixabay)

Aspida, an indirect subsidiary of Ares Management, has completed the acquisition of Bermuda-based life and annuity reinsurer F&G Reinsurance (F&G Re) from FGL Holdings (F&G), a subsidiary of Fidelity National Financial.

The financial terms of the deal were not revealed by the parties.

As part of the deal, announced in September 2020, Aspida will enter into a flow reinsurance agreement with F&G pertaining to the latter’s multi-year guaranteed annuity (MYGA) products on a coinsurance fund withheld basis.

F&G Re had nearly $2bn in invested assets as of 30 September 2020. The company caters to third-party life and annuity firms with reinsurance solutions.

It will continue to operate as a reinsurance firm in Bermuda under the Aspida Re brand.

Ares Management said that through Ares Insurance Solutions (AIS), it will remain focused on boosting its capabilities to originate and manage insurance assets for scaling Aspida’s platform.

Ares Insurance Solutions partner and head David Reilly 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 said that it will use the proceeds from the sale of F&G Re for general corporate purposes, which includes funding growth opportunities at F&G.

Based in Iowa, US, F&G is a provider of deferred annuities.

F&G was acquired earlier this year by Fidelity National Financial, which is a US-based title insurance company. The transaction represented an equity value of around $2.7bn for F&G.

F&G Re is one of the three insurance companies alongside F&G Life Insurance and F&G Life Insurance Company of New York in F&G’s portfolio.

The sale of F&G Re was taken up by F&G to focus on its core retail franchise and for growing its footprint in the bank and broker dealer channel.