AIG rebrands legacy reinsurance unit following Carlyle Group deal
American International Group (AIG) has renamed its legacy reinsurance portfolio DSA Re as Fortitude Group Holdings (Fortitude Re) following the completion of an acquisition of a 20 percent stake in the unit by private equity firm Carlyle Group.
The transaction was first announced on Aug. 1, 2018, and closed following receipt of regulatory approvals and other customary closing conditions.
AIG formed DSA Re, a wholly-owned Bermuda-based reinsurer, in February 2018.
AIG’s legacy portfolio includes the company's run-off general insurance lines (excess workers comp, environmental liability, public entity liability, accident & health, medical professional liability, asbestos & environmental), run-off life & retirement (L&R) lines (whole life, long-term care, and structured settlement, pension risk transfer prior to 2012), and legacy investments.
AIG said Fortitude Re’s new name represents the company’s focus on managing long-dated, complex risks. Fortitude currently reinsures $36 billion of AIG’s legacy life and annuity and general insurance liabilities.
As part of the agreement, Carlyle entered into a strategic asset management relationship whereby Fortitude Re and AIG will, in aggregate, allocate $6 billion of assets into various Carlyle managed strategies across corporate private equity, real assets, and private credit.
“We are hard at work building Fortitude Re for long-term success. The closing of Carlyle’s investment and brand launch are two key milestones on that journey,” said James Bracken, chief executive officer of Fortitude Re.
Brian Schreiber, managing director and co-head of Carlyle Global Financial Services Partners, said: “We look forward to working with our partners at AIG and Fortitude Re to grow the business and extend Carlyle’s asset management platform.”
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