Reinsurance News

Fortitude Re set for growth with launch of multi-line reinsurer & U.S. platform

6th January 2022 - Author: Luke Gallin

Fortitude Re has announced the formation of a new Bermuda multi-line reinsurer and the acquisition of a U.S. life insurer, as its subsidiary obtains Reciprocal Jurisdiction Reinsurer status.

Established in 2018 by international insurer AIG and global alternative asset manager, The Carlyle Group, Fortitude Re was originally set up to build AIG’s Bermudian legacy reinsurance platform into a standalone provider.

A year later, it was revealed that AIG was working on a sale or deconsolidation of the legacy book, before the carrier later agreed to sell a 76.6% interest in the run-off reinsurer to The Carlyle Group and T&D Holdings, leaving AIG with a 3.5% share.

It was announced by Fortitude Re yesterday that it had completed the takeover of AIG’s legacy insurance businesses following the acquisition of Fortitude Life & Annuity Solutions, Inc. and Fortitude P&C Solutions, Inc.

But while Fortitude Re was initially set up with just AIG’s legacy business, it’s now clear that it will be developed into a major global multi-line reinsurance group, with significant private equity backing.

Effective January 1st, 2022, Fortitude International Reinsurance Ltd. started operations as a Class 4 and Class E reinsurance company, licensed by the Bermuda Monetary Authority (BMA). It’s expected that the new reinsurer will complement its parent’s other operating entities and have a focus on reinsurance solutions for carriers based outside of the U.S.

Additionally, Fortitude Re completed its takeover of Rx Life Insurance Company on January 3rd, 2022, which it intends to rename Fortitude U.S. Reinsurance Company, from Heritage Life Insurance Company.

Fortitude Re U.S. is an Arizona-based life and annuity insurer widely licensed in the U.S., and will operate as the group’s U.S. reinsurance platform. This acquisition, says Fortitude Re, enables it to offer clients a U.S. domiciled reinsurance option.

On top of this, subsidiary Fortitude Reinsurance Company Ltd. has obtained Reciprocal Jurisdiction Reinsurer status, which the firm reports is the first such approval to be granted by the Texas Department of Insurance.

This approval allows U.S. ceding companies to take full statutory credit for reinsurance ceded to Fortitude Reinsurance Company Ltd. without any regulatory prescribed collateral requirements.

The entity is one of the first reinsurers to obtain such status in the U.S., and plans to seek similar status in other selected U.S. jurisdictions in the future.

James Bracken, Fortitude Re Chief Executive Officer (CEO), commented: “The transactions and regulatory approval represent an important step in the evolution and expansion of the capabilities Fortitude Re is able to offer to clients to solve their most complex challenges.

“With the establishment of FIRL, we expect to grow our international reinsurance business in Asia and the U.K. and European markets.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Brit hires Chief Technology Officer from iptiQ

Specialty insurer and reinsurer Brit has announced the appointment of Bilge Mert as Chief Technology Officer, commencing January 4th. In...