New $1bn reinsurer Ludlow Re enters market

Hildene Capital Management, a $12 billion credit-focused asset manager, has launched a new Cayman Islands-based, Class B(iii) insurance company Ludlow Re SPC.

Ludlow Re will offer reinsurance to the global insurance market and, as part of its inaugural transaction, will reinsure approximately $1 billion of fixed index annuity reserves through a quota share agreement entered into with a US-based life insurance carrier.

Ludlow Re received its B(iii) insurance license from the Cayman Islands Monetary Authority in September 2022.

“Given its ability to provide long-term, flexible capital, Ludlow Re optimises Hildene’s robust asset management capabilities, helping us as we seek to enhance returns for our investors,” said Brett Jefferson, founder and co-chief investment officer of Hildene.

“Since Hildene’s inception in 2008, we have taken a prudent approach to managing the size and scale of our assets and will continue to execute on this approach with Ludlow Re — opportunistically adding to our portfolio only when we believe we can confidently invest in assets that produce attractive returns for our clients.”

“Hildene’s structured credit assets, particularly TruPS CDOs, align well with the duration and liquidity profile of life and annuity insurance liabilities,” added Dushyant Mehra, co-chief investment officer. “We believe insurers and asset managers can benefit from a symbiotic relationship — money managers receive access to insurers’ expansive capital base while insurers receive access to sophisticated investment opportunities they may not have otherwise.”

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