Another private equity-led insurer has jumped into what RIJ has called the “Bermuda Triangle” business, and a former actuary from Athene, America’s leading seller of fixed indexed annuities, will run its reinsurance arm.
Aspida Holdings Ltd., an indirect subsidiary of Ares Management Corporation, closed earlier this month on its acquisition of Global Bankers Insurance Group, LLC, a US based insurance service provider and operations company.
The acquisition is pursuant to the regulatory and court approved settlement agreement related to Aspida’s previously disclosed transaction with Pavonia Life Insurance Company of Michigan. Going forward, Aspida will be rebranded as Aspida Financial Services, LLC, or Aspida Financial.
Separately, a subsidiary of Aspida has also recently entered into an agreement to acquire a US life insurance company that is broadly licensed nationwide. In combination with Aspida Financial, these two entities will form the foundation for Aspida’s nationwide life and annuity platform, which is expected to be in position to begin issuing annuities and other products in 2022.
“Bermuda Triangle” refers to a three-corner strategy involving the generation of annuity liabilities by a life/annuity insurer, an affiliated offshore reinsurer, and an affiliated asset manager experienced in loan origination and asset securitization. The strategy may be led by any of the three entities.
The acquisition of Aspida Financial is expected to complement Aspida Re, a Bermuda-domiciled life and annuity reinsurer launched last year. With approximately $2.3 billion in assets under management as of March 31, 2021, Aspida plans to “underwrite new insurance products, execute reinsurance transactions, and pursue opportunistic acquisitions.”
On July 26, Aspida Life Re Ltd., a reinsurance company and subsidiary of Aspida Holdings Ltd. announced that Jon Steffen has joined Aspida Re as President. Steffen was previously the Approved Actuary for Athene Life Re Ltd. from January 2015 to June 2021.
Aspida Re was launched in December 2020 following the acquisition of F&G Reinsurance Ltd. by Aspida, which is backed by Ares Management Corporation. Based in Hamilton, Bermuda, Aspida Re “provides solutions to insurance partners that are looking to optimize their balance sheets and best position their businesses for future growth,” according to a release.
Ares Management Corporation is a global alternative investment manager offering clients complementary primary and secondary investments across the credit, private equity, real estate and infrastructure asset classes.
As of March 31, 2021, including the acquisition of Landmark Partners, which closed June 2, 2021, and the acquisition of Black Creek Group, which closed July 1, 2021, Ares Management’s global platform had approximately $239 billion of assets under management with approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East.
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