AIG, Carlyle Complete Deal Creating Run-Off Reinsurer, Fortitude Re


The Carlyle Group has completed its acquisition of a 19.9 percent stake in Fortitude Group Holdings, a reinsurer operating as Fortitude Re, formerly known as DSA Re.

The AIG-Carlyle transaction, first announced in August, is part of a plan to build a standalone provider of reinsurance, claims handling and run-off management services for long-dated, complex risks to the global insurance industry. The transaction has now closed following receipt of regulatory approvals and satisfaction of other customary closing conditions.
This effort transforms AIG’s DSA Re, established in February 2018 as a Bermuda-based, compound reinsurer of its former insurance portfolio. Currently, DSA Re gives back the old life, annual income and general insurance obligations of $ 36 billion AIG.

In addition to having 19.9% ​​shares, Carlyle entered into a strategic asset management relationship. Thus, DSA Re and AIG will allocate a total of $ 6 billion of assets to various Carlyle managed strategies across corporate private equity, real assets and private loans.

AIG president and CEO Brian Duperreault said the move was in line with his main goal of building the DSA Re, which will effectively manage the old obligations while AIG fulfills its policy obligations and maximizes financial flexibility. . This partnership with Carlyle meets these goals while allowing AIG to release capital and participate in the construction and growth of the business.

The partnership is expanding Carlyle’s investment capabilities to the insurance area. Carlyle’s chief executive, Kewsong Lee, said Carlyle will present its global investment platform to DSA Re in a variety of asset classes and will ’work to achieve attractive returns for many years to the DSA Re portfolio Car.

The new company’s website says it is alan in a unique position to assess potential gains in all business areas and geographies Yeni.

Fortitude Re has offices in Bermuda, New York and Nashville.

James Bracken, CEO of Fortitude Re. Previously, Bracken was Finance Director of AIG General Insurance. Craig Buck, chief financial officer of Fortitude Re. Prior to this post, AIG was the head of the Insurance Company Capital and Asset / Liability Management for Life and Pension. Previously, Sean Coyle, chief operating officer of Reengineering and Financial Operations at AIG, is chief operating officer.

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