MetLife, Inc. and General Atlantic have revealed the formation of Chariot Reinsurance, Ltd. (Chariot Re), a to-be-registered Class E Bermuda-based life and annuity reinsurance company.
Cynthia Smith, a 30-year veteran of MetLife, is expected to lead Chariot Re as CEO. Meanwhile, Toby Srihiran Brown, MetLife’s Global Head of Reinsurance, and Graves Tompkins, General Atlantic’s COO, are expected to join Chariot Re’s Board of Directors as representatives of their respective companies.
According to the two firms, Chariot Re will have an initial combined equity investment of over $1 billion of which they will initially own approximately 15%.
The remaining equity interests will reportedly be held by third-party stakeholders, including Chubb, which is expected to be an anchor third-party investor.
MetLife said it will be initially reinsuring to Chariot Re an approximate $10 billion block of liabilities composed of structured settlement annuity contracts and group annuity contracts associated with pension risk transfers.
The transaction is, of course, subject to required regulatory approvals and the final amount of initial equity raised to support Chariot Re.
Michel Khalaf, President and Chief Executive Officer of MetLife, commented, “We are looking forward to seeing our collective vision to create a world-class provider of innovative reinsurance solutions come to life, leveraging the insurance and joint investment expertise of MetLife and General Atlantic.
“With the demand for life and retirement solutions anticipated to grow around the globe, MetLife views a strategic partnership with Chariot Re as a powerful avenue to further serve those expanding needs.”
Bill Ford, Chairman and Chief Executive Officer of General Atlantic, said, “General Atlantic and MetLife share a deep commitment to investment excellence, thoughtful risk management, and long-term value creation.
“Guided by MetLife’s robust origination capabilities and General Atlantic’s nearly 45 years of leadership in global private markets, we believe that Chariot Re will be well-positioned to deliver strong returns for its investors and drive sustainable growth going forward.”
