Ancient Financial, a newly established financial services company specialising in life and annuity reinsurance and asset management, has entered into a definitive agreement to acquire Bermuda-based life and annuity reinsurer F&G Re from a subsidiary of F&G Annuities & Life, with the business to be renamed Ancient Re upon closing.
Ancient Financial, part of Ancient, will be supported by significant equity commitments from its parent, alongside a consortium of sophisticated single-family offices and blue-chip institutional investors.
However, the firm will reportedly operate independently and will not be governed by an existing insurance company or asset manager.
Ancient said that this structure supports an open-architecture approach to assets and liabilities.
Ancient Financial will be led by industry veteran Erich Schram, who previously served as Head of Blackstone’s Insurance Portfolios as a Senior Managing Director with Blackstone Credit.
Schram was also previously the Head of Credit Origination and Trading as a Senior Managing Director of Blackstone Insurance Solutions.
Before Blackstone, Schram served as Chief Investment Officer of Guggenheim Life and Annuity Company from 2013 to 2018.
Meanwhile, Ancient’s founder, Chairman, and CEO, Alexander Klabin, will serve as Chairman of Ancient Financial.
As part of the deal, F&G will enter into a forward-flow reinsurance agreement with Ancient Re.
Erich Schram, CEO of Ancient Financial, commented, “We are excited to launch Ancient Financial’s reinsurance and asset management platform with the acquisition of F&G Re.
“This acquisition serves as the cornerstone of our platform. We look forward to continuing our partnership with F&G and leveraging their preeminent underwriting and distribution franchise to drive mutual growth.”
Chris Blunt, CEO of F&G, said, “This is a true win-win transaction for both F&G and Ancient. We had the opportunity to monetise an operation that was no longer needed to support our reinsurance strategy, while adding a quality flow reinsurance partner.”
