Global reinsurance company Fortitude Re has announced that Fortitude Life Insurance & Annuity Company (FLIAC) has entered the funding agreement backed notes market with an inaugural $500 million issuance.
The notes, which are a private offering to institutional investors, are priced at an aggregate principal amount of $500 million with a 4.625% interest rate and are due on October 6th, 2028.
They will be issued by Fortitude Global Funding, an unaffiliated Delaware statutory trust, and are backed by a funding agreement issued by FLIAC.
Alan Stewart, Group Treasurer, Fortitude Re, commented: “Entering this market aligns with our ongoing growth strategy. By diversifying our sources of capital, we reinforce the resilience of our balance sheet, unlock new avenues for growth, and continue delivering on our promise to provide long-term security and value to our stakeholders.”
The Notes are expected to carry ratings of BBB+ from Fitch and A3 from Moody’s which are in line with FLIAC’s financial strength ratings. The issuance is set to close on October 6, 2025.
Funding agreement backed notes are a type of securitised debt instrument that allows insurance companies to convert non-tradable funding agreements into liquid, marketable securities, broadening their investor base.
This allows the insurer to raise capital from a wider range of institutional investors.
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