Ares and Aspida complete acquisition of F&G from Fidelity

Ares Management Corporation and its indirect subsidiary Aspida Holdings have completed their acquisition of F&G Reinsurance from FGL Holdings, a subsidiary of Fidelity National Financial.

As part of the transaction, Aspida will enter into a strategic flow reinsurance agreement with F&G related to certain annuity products. Terms of the all cash transaction were not disclosed.

The company, a Bermuda-domiciled life and annuity reinsurer with approximately $2 billion in invested assets as of September 30, 2020, will continue to operate as a reinsurance company in Bermuda with the brand Aspida Re.

Members of the company’s management team will remain in place. Aspida Re said it intends to be a solutions provider to insurance partners that are looking to optimize their balance sheets and be best positioned for future growth.

Meanwhile, Ares Insurance Solutions will remain focused on originating and managing insurance assets to scale Aspida’s platform. This has included the appointment in October of Raj Krishnan, partner and chief investment officer, who joined from Wellington Management, who will lead asset management support for Aspida Re and its ceding insurers.

“With support from Ares and the AIS team, Aspida is poised to execute on its organic and inorganic growth strategy seeking to capitalize on the attractive and sizable annuity and retirement market,” said David Reilly, partner and head of Ares Insurance Solutions.

“We are excited by the opportunity to partner with insurance companies to help them efficiently meet their capital needs through our reinsurance offerings.”