In a strategic move to deepen their footprint in the Asian life and annuity insurance sector, FGH Parent (FGP), alongside its subsidiary Fortitude Re and investment powerhouse Carlyle, has unveiled a new reinsurance sidecar, named Fortitude Carlyle Asia Reinsurance (FCA Re).
This newly established entity, a Class E-licensed reinsurer based in Bermuda, is poised to become a key driver for the expansion and evolution of Fortitude Re's operations across the dynamic Asian insurance landscape. FCA Re's initial mandate involves taking on a portion of Fortitude Re's current liabilities, while also preparing to provide reinsurance support for forthcoming transactions that Fortitude Re undertakes in the Asian market. With a robust capital foundation exceeding $700 million, sourced from equity commitments by Fortitude Re, Carlyle, and a diverse group of international institutional investors including T&D Insurance Group, AllianceBernstein, Shinhan Life, and the National Pension Service of Korea (NPS), FCA Re is well-resourced for its ambitious objectives. Fortitude Re will serve as the insurance sponsor, with Carlyle assuming the critical role of asset management sponsor. This partnership is projected to inject approximately $10 billion in fee-earning assets under management into Carlyle once FCA Re's capital is fully deployed.
This collaboration underscores a shared vision to tap into the burgeoning Asian market. Brian Schreiber, head of Carlyle Insurance Solutions and partner at Carlyle, highlighted that FCA Re represents a natural progression of Carlyle's overarching strategy to deliver comprehensive asset, capital, and liability solutions to insurance clients globally. He further emphasized that this initiative demonstrates how sophisticated global insurance investors are increasingly choosing to access the Asian market by forging alliances with leading reinsurers and major global investment firms. This development follows Carlyle's recent significant investment of $1.3 billion in Trucordia, an insurance brokerage, and Fortitude Re's successful completion of a $4 billion reinsurance transaction with Japan's Taiyo Life Insurance earlier this year, signaling a period of aggressive growth and strategic partnerships within the insurance and reinsurance sectors.
The establishment of FCA Re is more than just a business transaction; it represents a commitment to innovation and growth in the global financial landscape. By pooling expertise and resources, these industry leaders are not only expanding their own horizons but also setting a precedent for strategic partnerships that can drive progress and foster greater stability within the insurance and reinsurance markets. This forward-thinking approach, focused on collaboration and market penetration, serves as a beacon of positive development, demonstrating how strategic alliances can unlock new opportunities and contribute to the broader economic well-being across continents.