Warwick Re completes second deal, increases asset base by $550m

Warwick Re Ltd, the Bermuda-domiciled reinsurer, has completed its second transaction, an annuity reinsurance agreement with a US life insurer.

Under the terms of the agreement, Warwick Re has reinsured an inforce block of US annuity business and the cedant will continue to service and administer the policies.

At the same time, Warwick Re has agreed to provide quota share reinsurance for future fixed annuity flow business.

The transaction is also expected to increase Warwick Re’s asset base by approximately $550 million.

If you recall, Warwick Re recently completed a roughly $500 million quota share reinsurance agreement with UK bulk purchase annuity (BPA) insurer Just Group plc.

“We are pleased to form this new reinsurance partnership, which represents another example of our ability to provide capital efficient solutions and asset management expertise to support our clients in growing their businesses,” commented Warwick Re’s founder and CEO, Chris McGlashan.

“The U.S. annuity market is an important strategic focus for Warwick and is complementary to our U.K. BPA business.  We look forward to expanding our market presence and working with other U.S. insurers to deploy innovative solutions to meet their capital and risk management objectives and support their fixed annuity originations.”