SILAC Insurance Company has entered into a $2.5 billion quota share agreement with Hildene Capital Management affiliate, Ludlow Re, which will provide reinsurance for SILAC’s annuity products.
The agreement comes as part of SILAC and Hildene entering into a long-term strategic alliance.
As part of the alliance, Hildene has acquired a strategic minority ownership interest in SILAC.
Hildene will also provide investment management oversight to $2 billion of SILAC’s general account assets, leveraging its position as a manager of scale and expertise in attractive asset classes to benefit SILAC’s policyholders and shareholders.
Stephen C. Hilbert, Chairman and Chief Executive Officer of SILAC, commented, “I couldn’t be more pleased to form this strategic alliance with Hildene, a well-recognized credit investor with a disciplined approach to portfolio management.
“This transaction – along with our increased bank facility – accomplishes SILAC’s goal of managing our risk-based capital company action level at over 300%. I firmly believe that Hildene’s investment experience and commitment to SILAC’s future reinsurance needs augments our Company’s strengths and positions SILAC to remain one of the leaders in the asset accumulation sector.”
Brett Jefferson, Founder and Co-Chief Investment Officer of Hildene, added, “SILAC has built a market-leading annuity distribution platform, and we are excited to partner with Steve and his team at an important point in the Company’s evolution.
“Our alliance with SILAC underscores the confidence we have in the Company’s ongoing success and Hildene’s ability to source attractive investment opportunities for longer-term capital. We look forward to a symbiotic relationship with SILAC for years to come as we continue to scale the Ludlow Re platform.”
The alliance was approved by applicable regulators and closed at the end of December last year.
Evercore, Inc. and Kramer Levin Naftalis & Frankel LLP provided financial and legal advisory services to Hildene.
Meanwhile, Goldman Sachs and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. provided financial and legal advisory services to SILAC.
Ludlow Re, a Class B(iii) insurance company based in the Cayman Islands, was launched by Hildene back in November last year.
