Global insurer Allianz has established a new independent strategic reinsurance platform called Sconset Re Ltd., which will be capitalized through equity investments from high-quality institutional partners.
Located in Bermuda, Sconset Re will specialise in assuming Fixed Indexed Annuity product risk and its asset management, and will aim to deliver more efficient returns across the subject business.
Initially, the new platform will reinsure a $4 billion block of annuity liabilities and will enter into a forward flow agreement for $5-10 billion of new business. PIMCO, an investment management firm, will manage most of the investment portfolio.
Both Voya and Antares have been named as two of the institutional partners of Sconset Re, with each set to manage a portion of the sidecar’s asset portfolio.
Deutsche Bank acted as the sole financial advisor to insurer Allianz on the transaction, and also acted as the sole arranger of a debt financing facility to Sconset Re.
“This transaction is representative of the opportunity that Allianz sees with its life and asset management business in the U.S,” says Deutsche Bank.
