Ludlow Re, a new Class B(iii) insurance company based in the Cayman Islands, has been launched by Hildene Capital Management, LLC, a diversified institutional asset manager.
According to the announcement, Ludlow Re will offer reinsurance to the global insurance market and, as part of its inaugural transaction, will reinsure approximately $1bn of fixed index annuity reserves through a quota share agreement entered into with a US-based life insurance carrier.
The formation of this new reinsurer broadens Hildene’s asset management capabilities further strengthening its platform.
Brett Jefferson, Founder and Co-Chief Investment Officer of Hildene, commented: “Given its ability to provide long-term, flexible capital, Ludlow Re optimises Hildene’s robust asset management capabilities, helping us as we seek to enhance returns for our investors.
“Since Hildene’s inception in 2008, we have taken a prudent approach to managing the size and scale of our assets and will continue to execute on this approach with Ludlow Re — opportunistically adding to our portfolio only when we believe we can confidently invest in assets that produce attractive returns for our clients.”
Dushyant Mehra, Co-Chief Investment Officer of Hildene, added: “Hildene’s structured credit assets, particularly TruPS CDOs, align well with the duration and liquidity profile of life and annuity insurance liabilities.
“We believe insurers and asset managers can benefit from a symbiotic relationship — money managers receive access to insurers’ expansive capital base while insurers receive access to sophisticated investment opportunities they may not have otherwise.”
