Upon closing of the deal, F&G Reinsurance will operate under the Aspida brand, Aspida Re, which will offer customised solutions to help annuity and life carriers to optimise their capital needs
Aspida, a subsidiary of Ares Management, has agreed to acquire F&G Reinsurance, a Bermuda-domiciled life and annuity reinsurer, from FGL Holdings for an undisclosed amount.
F&G Reinsurance has nearly $2bn in invested assets as of 30 June 2020. Upon completion of the deal, F&G Reinsurance will operate under the Aspida brand (Aspida Re).
FGL Holdings is a subsidiary of Fidelity National Financial, a provider of title insurance and transaction services to the real estate and mortgage industries.
Ares Management currently manages more than $16bn in assets across several investment strategies for more than 100 insurance companies.
Following the closing of the deal, Aspida Re is expected to offer customised solutions to help annuity and life carriers to optimise their capital needs, while improving their financial results and managing their business growth.
Aspida Re to retain F&G Reinsurance’s management team
Aspida Re will retain F&G Reinsurance’s management team and will enter into a strategic flow reinsurance agreement to support it on some annuity products.
Ares CEO and president Michael Arougheti said: “We are excited to announce this acquisition, which marks an important next step in executing upon Aspida’s overall growth plans.
“We remain committed to leveraging the expansive capabilities across the Ares and AIS platforms to support Aspida’s strategic objectives.
“With our market leading credit platform, we believe we are ideally suited to enable Aspida to consolidate market share in this strong growth sector.”
Subject to regulatory approvals and other customary closing conditions, the acquisition is expected to be closed in the fourth quarter of this year.
Ares Insurance Solutions partner and head David Reilly said: “We believe that Aspida Re is well positioned to become a leader in the reinsurance space with the acquisition of a sizeable reinsurance platform and a talented Bermuda-based team with deep reinsurance expertise.
“We are also excited about our strategic flow reinsurance agreement with F&G, which will support further growth of both of our businesses.
“We are encouraged by the current market environment, which provides a compelling opportunity for Aspida Re to be a solutions provider to insurance partners that are looking to optimise their balance sheets and be best positioned for future growth.”