Bermuda-registered Global Atlantic, which is a subsidiary of KKR & Co., said it will deploy the capital on behalf of its investors, alongside the Global Atlantic balance sheet in qualifying life and annuity reinsurance transactions.
KKR will serve as investment manager for the assets backing Ivy II’s reinsured liabilities, similar to the role it played with respect to Global Atlantic’s first reinsurance co-investment vehicle, Ivy I, which raised $1 billion, and Global Atlantic’s assets
“This is a great time to bring additional capital to the industry, and we are thrilled that our strategic partnership with KKR has allowed us to broaden the group of investors in Global Atlantic and Ivy II. With access to Ivy II’s committed capital, we can do more to serve our reinsurance clients in a growing market,” said Phil Sherrill, chief strategy officer for Global Atlantic.
"We are excited by Ivy II investors’ confidence in our reinsurance strategy and franchise,” said Manu Sareen, co-president of Global Atlantic, and head of the institutional business. “We see strong demand for reinsurance solutions, driven by industry-wide restructuring, an evolving macroeconomic environment, and lower availability of historical sources of capital for the industry
“With Ivy II, we are better positioned to support our reinsurance clients’ needs and to meet our goal of being our clients’ reinsurer of choice.”
Ivy II investors include sovereign wealth funds, pensions, endowments, insurance companies, family offices, and high net worth individuals.
Global Atlantic signed a $19.2 billion reinsurance agreement with MetLife, Inc. in June.
The transaction, signed between subsidiaries of the two companies, will reinsure a seasoned and diversified block of MetLife’s US retail annuity and life insurance business.