What You Have to Know
- The listing of Ivy II shareholders consists of high-net-worth people in addition to institutional buyers.
- An earlier Ivy I fund had $1 billion in capital.
- A World Atlantic govt sees much less competitors for reinsurance offers.
A subsidiary of KKR has raised $2.4 billion in reinsurance deal cash from exterior buyers.
World Atlantic introduced Monday that it plans to make use of the money to supply reinsurance for all times insurance coverage and annuity issuers.
Manu Sareen, co-president of World Atlantic, mentioned this can be a nice time to have a giant new pool of reinsurance capital.
Components driving sturdy demand for reinsurance embrace “industry-wide restructuring, an evolving macroeconomic surroundings, and decrease availability of historic sources of capital for the {industry},” Sareen mentioned.
What It Means
For shoppers with life insurance coverage insurance policies and annuity contracts, the deal might imply that extra of their enterprise will come into the orbit of World Atlantic and different comparatively new reinsurers.
For shoppers searching for funding concepts, World Atlantic’s technique is an indication that some huge cash managers see this as a good time for sturdy gamers to take a little bit danger.
Reinsurance
Reinsurance is insurance coverage for insurance coverage corporations.
U.S. life and annuity issuers use reinsurance to guard themselves towards the chance that life insurance coverage insureds may die ahead of anticipated and the chance that annuity holders will stay longer than anticipated.
Issuers also can use reinsurance to realize different objectives, reminiscent of shifting day-to-day oversight over undesirable blocks of enterprise into the arms of an organization that may come beneath completely different accounting, capitalization or monetary reporting guidelines than the corporate that initially wrote the enterprise.
The corporate that wrote the enterprise continues to have the final word accountability for the enterprise, regardless of the existence of reinsurance agreements.
