FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Ares Management Corp. Announces Agreement by Aspida to Acquire F&G Reinsurance Ltd from FGL Holdings

October 01, 2020, 08:45 AM
Filed Under: Insurance

Ares Management Corporation and its indirect subsidiary Aspida Holdings Ltd. (“Aspida”) jointly announced an agreement by Aspida to acquire all outstanding common shares in F&G Reinsurance Ltd, a Bermuda-domiciled life & annuity reinsurer with approximately $2 billion in invested assets as of June 30, 2020. The Company is being acquired from FGL Holdings (“F&G”), a subsidiary of Fidelity National Financial, Inc. (“FNF”) (NYSE: FNF). Following closing, the Company expects to continue to operate as a reinsurance company under the Aspida brand.

With support from Ares Insurance Solutions (“AIS”), this transaction advances a critical element of Aspida’s overall growth strategy to capitalize on the growing retirement market and increasing demand for guaranteed insurance products. Aspida’s three-pronged strategy includes executing new reinsurance contracts, pursuing opportunistic acquisitions of insurance companies and issuing new annuity and life insurance products. Ares currently manages over $16 billion of assets in various investment strategies for more than 100 insurance company clients. Ares and the AIS platform are leveraging this experience to provide asset oversight and management as well as access to infrastructure and capital to drive Aspida’s growth objectives.

Aspida Re will be well positioned for future growth in providing customized solutions to help annuity and life carriers optimize their capital needs, improve financial results and manage the growth of their businesses. In addition to asset management oversight, Ares and AIS also expect to provide Aspida Re with capital optimization and strategic M&A origination and advisory services. Concurrent with the closing of the transaction, Aspida Re will retain members of the Company’s management team and enter into a strategic flow reinsurance agreement to support F&G on certain annuity products. This agreement is expected to be an opportunity to further propel growth for both Aspida Re and F&G.

“We are excited to announce this acquisition, which marks an important next step in executing upon Aspida’s overall growth plans,” said Michael Arougheti, Chief Executive Officer and President of Ares. “We remain committed to leveraging the expansive capabilities across the Ares and AIS platforms to support Aspida’s strategic objectives. With our market leading credit platform, we believe we are ideally suited to enable Aspida to consolidate market share in this strong growth sector.”

“We believe that Aspida Re is well positioned to become a leader in the reinsurance space with the acquisition of a sizeable reinsurance platform and a talented Bermuda-based team with deep reinsurance expertise. We are also excited about our strategic flow reinsurance agreement with F&G, which will support further growth of both of our businesses,” said David Reilly, Partner and Head of Ares Insurance Solutions. “We are encouraged by the current market environment, which provides a compelling opportunity for Aspida Re to be a solutions provider to insurance partners that are looking to optimize their balance sheets and be best positioned for future growth.”

The acquisition of the Company is expected to close during the fourth quarter of 2020, subject to regulatory approvals and other customary closing conditions. The transaction is expected to be financially accretive as Aspida executes on its multiyear growth plans. Terms were not disclosed, but the consideration will be all cash.

Lazard acted as exclusive financial advisor and DLA Piper LLP served as legal counsel to Ares and Aspida.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.