26North Reinsurance Holdings (26N Re) has finalised a significant $4.9 billion reinsurance transaction with Life Insurance Company of the Southwest (LSW), a member of the National Life Group (NLG).
This transaction elevates 26North’s total assets under management to approximately $22 billion.
In this agreement, 26N Re and its subsidiaries will provide reinsurance coverage for a diverse portfolio of LSW’s multi-year guarantee and fixed index annuity products. Additionally, they’ve committed to offering quota share reinsurance for future fixed annuities issued by LSW.
NLG, through one of its subsidiaries, holds a minority stake in the 26N Re subsidiary responsible for reinsuring the policies from LSW.
Josh Harris, Founder of 26North, notes, “This transaction will significantly scale our reinsurance business and continue to diversify 26North’s platform. We believe that our culture of prudent risk management and strong governance allows 26N Re to partner with the highest-quality cedants who are looking to leverage our long-term capital and asset management expertise.”
Cole Charnas, Partner at 26North, affirms, “The strategic transaction with NLG further advances 26N Re’s position as a reinsurer of choice in the annuity marketplace and solidifies its reputation as a leader in block reinsurance and forward flow transactions.”
Mehran Assadi, Chairman, CEO and President of National Life Group, remarks, “National Life has been keeping its promises to policyholders for 175 years.”
Assadi adds, “This strategic partnership with 26North will expand our opportunity to serve Middle America for our next 175 years.”
26N Re received advisory and partnership support from Agam Capital for the transaction, utilising its industry-leading pALM asset and liability management system alongside the operational assistance of the Agam Bermuda ISAC platform.
Agam is also advising and partnering with 26North in the establishment and launch of AeCe ISA, Ltd. (AeCe), a Bermuda-domiciled Class E life and annuity reinsurer. AeCe will reinsure single premium deferred annuities underwritten by LSW.
As part of the launch, AeCe will leverage Agam’s Bermuda ISAC structure, providing a comprehensive range of operational, management, and governance services to Bermuda-based reinsurers.
Chak Raghunathan and Avi Katz, Co-Founders of Agam, says, “We are thrilled to be supporting the talented National Life Group and 26North teams as they launch, develop and grow their new reinsurance platform.”
Josh Harris, Founder of 26North, explains, “This transaction illustrates how 26N Re’s strategic partnership with Agam continues to yield positive results as we scale our reinsurance business and diversify our platform.”
“Agam’s innovative, analytics-driven platform aligns with our vision for building a next-generation firm. We are pleased to deepen our partnership with Agam through the launch of AeCe, and together deliver attractive solutions to our insurance partners and ultimately, policyholders,” Harris concludes.
Mehran Assadi, Chairman, CEO and President of National Life Group, states, “We expect this strategic arrangement to allow us to continue to grow with purpose.
“Our focus on serving Middle America, the most underserved segment of the market, will be enhanced by the added capacity AeCe provides.”
