Fortitude Re eyes international expansion with launch of new multi-line reinsurer

Fortitude Re has formed a new Bermuda multi-line reinsurer, Fortitude International Reinsurance (FIRL), as its plans to expand internationally in Asia and the UK and European markets.

Fortitude Re was originally formed by AIG to manage its legacy business. In November 2019, The Carlyle Group and Japanese insurance company T&D entered into an agreement to acquire a 76.6 percent ownership interest in Fortitude Group Holdings from AIG for approximately $1.8 billion.

Effective January 1, 2022, FIRL started operations as a Class 4 and Class E reinsurer, licensed by the Bermuda Monetary Authority. The new reinsurer plans to complement Fortitude Re’s other operating entities and focus on reinsurance solutions for insurers domiciled outside the US.

Additionally, Fortitude Re completed its acquisition of Rx Life Insurance Company from Heritage Life Insurance Company. It intends to rename the acquired firm as Fortitude US Reinsurance Company (Fortitude Re US).

Fortitude Re US is an Arizona domiciled life and annuity insurer widely licensed in the US, and will operate as a US reinsurance platform for Fortitude Re. The acquisition will enable the company to offer clients a US domiciled reinsurance option.

Furthermore, Fortitude Re’s subsidiary Fortitude Reinsurance Company (FRL), Bermuda’s largest multi-line reinsurer, obtained approval to operate as a Reciprocal Jurisdiction Reinsurer, the first such approval to be granted by the Texas Department of Insurance (TDI).

The entity is among the first reinsurers to obtain such status in the US, and FRL expects to seek similar status in other selected US jurisdictions, the company said.

The Reciprocal Jurisdiction Reinsurer status allows US ceding companies to take full statutory credit for reinsurance ceded to FRL without any regulatory prescribed collateral requirements.

James Bracken (pictured), Fortitude Re chief executive officer, said: “The transactions and regulatory approval represent an important step in the evolution and expansion of the capabilities Fortitude Re is able to offer to clients to solve their most complex challenges. With the establishment of FIRL, we expect to grow our international reinsurance business in Asia and the U.K. and European markets.”

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