The newly launched Fortitude Carlyle Asia Reinsurance, Ltd. (FCA Re) reinsurance sidecar, a joint initiative between Fortitude Re and global investment firm Carlyle, has been capitalised with more than $700 million in deployable capital from a range of investors.
In that same article, it was also confirmed that Fortitude Re had worked with its key backers, Carlyle and T&D Holdings, the parent to Japanese insurance group T&D, to launch this FCA Re reinsurance sidecar vehicle.
FCA Re is a Class E licensed Bermuda-domiciled reinsurer established to expand Fortitude Re’s growth in the Asian life and annuity market.
A recent announcement has now confirmed that FCA Re will initially assume a share of Fortitude Re’s existing liabilities and will also reinsure a portion of the company’s future transactions in Asia.
FCA Re is capitalized with more than $700 million in deployable capital, comprising both equity and anticipated debt capacity.
The newly established reinsurance sidecar has secured equity commitments from Fortitude Re, Carlyle, and a group of global institutional investors, which includes T&D Insurance Group, AllianceBernstein, Shinhan Life, and National Pension Service of Korea (NPS), among others.
Moreover, Fortitude Re will serve as insurance sponsor and Carlyle will serve as asset management sponsor to FCA Re.
Once its capital is fully deployed, FCA Re is expected to add approximately $10 billion of fee-earning assets under management to Carlyle.
Furthermore, J.P. Morgan Securities, LLC acted as financial advisor, while Debevoise & Plimpton LLP acted as legal advisor to the sponsors and FCA Re.
It’s important to remember that Asia represents one of the most dynamic and attractive opportunities in the global reinsurance market today, driven by aging demographics and a growing need for insurers to rethink how they manage capital, risk, and long-duration liabilities.
Alon Neches, Chief Executive Officer of Fortitude Re, commented: “Fortitude Re has already reinsured approximately $15 billion in reserves on behalf of clients in Asia and we are dedicated to making further investments in the region. FCA Re will help us continue delivering solutions that drive our clients’ strategies forward.”
Brian Schreiber, Partner at Carlyle and Head of Carlyle Insurance Solutions, said: “FCA Re is a natural extension of Carlyle’s strategy to deliver integrated asset, capital and liability solutions to insurance clients worldwide.”
Adding: “Through FCA Re, we are further demonstrating that the most sophisticated insurance investors globally are choosing to access the Asian market by partnering with one of the world’s most accomplished reinsurers and one of the largest global investment firms. With Carlyle’s more than 25-year history and deep experience in Asia, we are excited to continue to drive growth in the region.”
It has also been confirmed that AllianceBernstein (AB), one of the lead investors in FCA Re, intends to manage private alternative assets for FCA Re and will also appoint a member to the FCA Re Board of Directors.
Onur Erzan, AB’s Global Head of Private Wealth, Alternatives & Distribution, added: “Our firm has been serving insurance companies for more than 40 years. We look forward to bringing our differentiated fixed income and private credit origination capabilities to a strategic partner. Our investment in FCA Re demonstrates the continued momentum of our insurance asset management capabilities as we focus on growth across Asia.”
Neil Jain, AB’s Head of Strategy, said: “This milestone with FCA Re not only expands AB’s insurance asset management platform, led by AB’s CIO of Insurance Geoff Cornell, but accelerates AB’s growth strategy globally. We look forward to working with FCA Re, as it reinforces AB’s decades-long commitment to both the Asia region and the Asia Insurance Market.”
Neches also commented: “We appreciate the partnership with AB and their investment in FCA Re. This bolsters our ability to continue to develop innovative solutions for our clients in this important region.”
As a reminder, you can find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars and related transactions.
