Fortitude Carlyle Asia Reinsurance, Ltd. (FCA Re), Fortitude Re’s and Carlyle’s recently launched Asia focused reinsurance sidecar, is commencing operations with more than $700 million in deployable capital, including equity and expected debt capacity.
According to the announcement, FCA Re will initially assume a share of existing liabilities from Fortitude Re and will also reinsure a share of Fortitude Re’s future transactions in Asia.
FCA Re has secured equity commitments from Fortitude Re, Carlyle, along with a group of global institutional investors including T&D Insurance Group, Shinhan Life, and National Pension Service of Korea (NPS), among others.
AllianceBernstein (AB) has also recently announced an equity investment in FCA Re. As part of this transaction, AB intends to manage private alternative assets for FCA Re and will also appoint a member to the FCA Re Board of Directors.
Onur Erzan, AB’s Global Head of Private Wealth, Alternatives & Distribution, commented: “We look forward to bringing our differentiated fixed income and private credit origination capabilities to a strategic partner. Our investment in FCA Re demonstrates the continued momentum of our insurance asset management capabilities as we focus on growth across Asia.”
Fortitude Re will serve as an insurance sponsor for FCA Re, leveraging its expertise in reinsurance and liability management. Carlyle will serve as asset management sponsor.
Once its capital is fully deployed, FCA Re is expected to add approximately $10 billion of fee-earning assets under management to Carlyle.
Alon Neches, Chief Executive Officer of Fortitude Re, emphasised the firm’s existing commitment to the region. He said: “Fortitude Re has already reinsured approximately $15 billion in reserves on behalf of clients in Asia and we are dedicated to making further investments in the region. FCA Re will help us continue delivering solutions that drive our clients’ strategies forward.”
Brian Schreiber, Partner at Carlyle and Head of Carlyle Insurance Solutions, stated: “FCA Re is a natural extension of Carlyle’s strategy to deliver integrated asset, capital and liability solutions to insurance clients worldwide.
“Through FCA Re, we are further demonstrating that the most sophisticated insurance investors globally are choosing to access the Asian market by partnering with one of the world’s most accomplished reinsurers and one of the largest global investment firms. With Carlyle’s more than 25-year history and deep experience in Asia, we are excited to continue to drive growth in the region.”
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