Global Atlantic raises over $2.4bn for second reinsurance sidecar Ivy II

Global Atlantic Financial Group, the US life, retirement and annuities insurance and reinsurance company, has now closed on a successful more than $2.4 billion third-party capital raise for its second reinsurance sidecar structure, Ivy II.

The Ivy Co-Invest Vehicle II LLC (Ivy II) is a reinsurance co-investment vehicle through which Global Atlantic brings third-party capital into its business to augment its ability to write large life and annuity reinsurance deals.

The more than $2.4 billion raised will now be deployed, on behalf of the third-party investors, alongside the Global Atlantic balance sheet in qualifying life and annuity reinsurance transactions, the company explained.

Global Atlantic sees the capital as helping to bolster its own capital base, enhancing its combined resources to enter into reinsurance deals.

Investors benefit from Global Atlantic’s track-record and underwriting abilities, its access to risk and ability to structure reinsurance transactions.

They also benefit from relationship to majority-owner KKR & Co. Inc., a subsidiary of which will serve as investment manager for the assets backing Ivy II’s reinsured liabilities, as it had for the first Ivy Re sidecar deal.

“This is a great time to bring additional capital to the industry, and we are thrilled that our strategic partnership with KKR has allowed us to broaden the group of investors in Global Atlantic and Ivy II. With access to Ivy II’s committed capital, we can do more to serve our reinsurance clients in a growing market,” explained Phil Sherrill, Chief Strategy Officer for Global Atlantic.

“We are excited by Ivy II investors’ confidence in our reinsurance strategy and franchise,” added Manu Sareen, Co-President of Global Atlantic, and Head of the Institutional Business. “We see strong demand for reinsurance solutions, driven by industry-wide restructuring, an evolving macroeconomic environment, and lower availability of historical sources of capital for the industry. With Ivy II, we are better positioned to support our reinsurance clients’ needs and to meet our goal of being our clients’ reinsurer of choice.”

Ivy II was set up after the successful deployment of Ivy I, which was founded in 2020 with over $1 billion of capital.

Ivy II has a diverse investor base, across institutions including sovereign wealth funds, pensions, endowments, insurance companies, family offices, and high net worth individuals.

Global Atlantic will deploy its own balance sheet capital alongside Ivy II in qualifying life and annuity reinsurance transactions, so there will be a close alignment between Global Atlantic and Ivy II shareholders.

As we reported recently, one of the investors in the Ivy Re II sidecar vehicle is expected to be Japan Post Insurance.