Global Atlantic sets up $1bn Ivy reinsurance co-investment vehicle

Global Atlantic Financial Group has set up a new co-investment vehicle to provide the re/insurer with approximately $1 billion of additional capital for new transactions.

Global Atlantic and the investment vehicle Ivy will co-invest in new qualifying reinsurance opportunities sourced by Global Atlantic’s institutional reinsurance business. These transactions include both reinsurance of life & annuity blocks and reinsurance of pension risk transfer (PRT) transactions.

Business ceded to Ivy will be managed using Global Atlantic’s risk and investment management capabilities.

“The Ivy co-investment vehicle provides Global Atlantic with access to up to approximately $1 billion of additional capital for new transactions,” said Manu Sareen, head of Global Atlantic’s Institutional business and chief executive officer of Global Atlantic Re. “This co-investment vehicle provides Global Atlantic with significant flexibility to better serve our reinsurance clients and gives our co-investors an opportunity to earn compelling risk-adjusted returns by deploying capital in this attractive market.”

Sareen added: “Since Global Atlantic’s founding, we have reinsured approximately $30 billion of reserves spanning life & retirement blocks and PRT reinsurance. We look forward to continuing to partner with insurers by providing customized solutions to meet the unique financial, risk and capital objectives of each of our clients.”