Reinsurance News

AM Best places F&G Re under review following Aspida acquisition

8th October 2020 - Author: Charlie Wood

AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of F&G Re.

am-best-logoThe rating change comes after parent F&G and US title insurer Fidelity reached an agreement to sell F&G Re to Aspida Holdings, an indirect subsidiary of Ares Management.

F&G Re is the Bermuda domiciled reinsurance arm of F&G, with approximately $2 billion in invested assets as of the end of the second-quarter.

In connection with the transaction, AM Best notes that F&G and Aspida (via F&G Re) will enter into a flow reinsurance agreement with respect to F&G’s multi-year guaranteed annuity products on a coinsurance fund withheld basis.

The under review status partially reflects the fact that F&G Re is no longer strategically important to F&G.

AM Best says the ratings will remain under review with developing implications until the close of the transaction and a review by AM Best of the post-transaction details.

The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, including regulatory approval.

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