Fortitude Re introduced the formation of a Bermuda multi-line reinsurer and the acquisition of a U.S. life insurer.
As well as, Fortitude Re’s subsidiary, Fortitude Reinsurance Co. Ltd. (FRL), Bermuda’s largest multi-line reinsurer, obtained approval to function as a “reciprocal jurisdiction reinsurer,” the primary such approval to be granted by the Texas Division of Insurance coverage.
Because of this, Bermuda-based Fortitude Re stated it now has the flexibleness to transact by a number of entities and constructions to assist its purchasers obtain their aims.
The announcement follows different lately introduced transactions that introduce extra capabilities to Fortitude Re’s franchise, together with the acquisition of two U.S.-domiciled third social gathering directors from American Worldwide Group Inc. and the pending acquisition of Prudential Annuities Life Assurance Corp. and its in-force legacy variable annuity block from Prudential Monetary Inc.
Particulars About Bermuda Reinsurer, U.S. Platform
Efficient Jan. 1, 2022, Fortitude Worldwide Reinsurance Ltd. (FIRL) commenced operations as a Class 4 and Class E reinsurer, licensed by the Bermuda Financial Authority. FIRL will complement Fortitude Re’s different working entities and deal with reinsurance options for insurers domiciled outdoors the U.S.
As well as, on Jan. 3, 2022, Fortitude Re accomplished its acquisition of Rx Life Insurance coverage Co. (to be renamed Fortitude U.S. Reinsurance Co. or Fortitude Re U.S.) from Heritage Life Insurance coverage Co. Fortitude Re U.S., which can function a U.S. reinsurance platform for Fortitude Re, is an Arizona domiciled life and annuity insurer extensively licensed within the U.S. This acquisition will allow Fortitude Re to supply purchasers a U.S. domiciled reinsurance possibility.
Efficient Jan. 1, 2022, the Texas Division of Insurance coverage granted FRL authority to function as a reciprocal jurisdiction reinsurer. FRL expects to hunt related standing in different chosen U.S. jurisdictions within the close to future.
FRL’s reciprocal jurisdiction reinsurer standing permits U.S. ceding corporations to take full statutory credit score for reinsurance ceded to FRL with none regulatory prescribed collateral necessities, successfully treating FRL for these functions as a U.S. domiciled reinsurer. FRL is among the many first reinsurers to acquire such standing within the U.S.
“The transactions and regulatory approval symbolize an necessary step within the evolution and enlargement of the capabilities Fortitude Re is ready to supply to purchasers to resolve their most complicated challenges. With the institution of FIRL, we count on to develop our worldwide reinsurance enterprise in Asia and the UK and European markets,” stated James Bracken, Fortitude Re CEO.
Sidley Austin LLP served as authorized adviser and Merger & Acquisition Companies Inc. served as a monetary adviser to Fortitude Re in reference to the acquisition of Fortitude Re U.S.
Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. served as authorized adviser to Fortitude Re in reference to FRL’s utility for reciprocal jurisdiction reinsurer standing.
About Fortitude Re
The Fortitude Re group consists of Bermuda’s largest multi-line composite reinsurer that designs bespoke transactional options for legacy life & annuity and P/C strains. Fortitude Re is an unbiased firm backed by a consortium of refined investor teams led by The Carlyle Group and T&D Insurance coverage Group. Fortitude Re holds roughly $45 billion in invested property as of June 30, 2021.
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