Life and annuity re/insurance firm Global Atlantic Financial Group has announced the establishment of Ivy Co-Investment Vehicle (Ivy), which will allow Global Atlantic and Ivy to co-invest in new reinsurance opportunities sourced by Global Atlantic’s institutional reinsurance business.
The vehicle is designed to co-invest approximately $1 billion with Global Atlantic and its subsidiaries in qualifying reinsurance transactions.
These transactions include both reinsurance of life & annuity blocks and reinsurance of pension risk transfer (PRT) transactions.
“The Ivy co-investment vehicle provides Global Atlantic with access to up to approximately $1 billion of additional capital for new transactions,” explained Manu Sareen, Head of Global Atlantic’s Institutional business and Chief Executive Officer of Global Atlantic Re Limited.
“This co-investment vehicle provides Global Atlantic with significant flexibility to better serve our reinsurance clients and gives our co-investors an opportunity to earn compelling risk-adjusted returns by deploying capital in this attractive market.”
Effectively, the vehicle will act as a kind of sidecar to enable institutional investors to participate in the returns of life and annuity reinsurance deals.
It could be comparable to the Athene Co-Invest Reinsurance Affiliate (ACRA) insurance-linked sidecar vehicle, which was launched by Athene and its parent Apollo to enable third-party investors to participate in private deals alongside the firm.
The ACRA structure operates as a kind of reinsurance sidecar fed by an investment fund managed by Apollo, enabling investors to participate alongside the insurer and providing capacity to support Athene’s larger reinsurance deals.
Global Atlantic explained that its reinsurance client base will continue to be able to reinsure transactions through Commonwealth Annuity and Life Insurance Company, Global Atlantic’s reinsurance entity.
Business ceded to Ivy will be managed using Global Atlantic’s leading risk and investment management capabilities.
“Since Global Atlantic’s founding, we have reinsured approximately $30 billion of reserves spanning life & retirement blocks and PRT reinsurance,” Sareen continued.
“We look forward to continuing to partner with insurers by providing customized solutions to meet the unique financial, risk and capital objectives of each of our clients.”
