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Talcott launches $1bn Bermuda reinsurance sidecar with Goldman Sachs
The West Grove Re sidecar will take part in a quota share of certain Talcott-sourced US annuities, aiming to boost scalable, capital-efficient growth.
Talcott Financial Group has partnered with Goldman Sachs to launch a Bermuda-domiciled reinsurance sidecar, West Grove Re, Ltd, after closing an approximately $1 billion capital raise, according to Reinsurance News.
West Grove Re will participate in a quota share of certain Talcott-sourced US annuities using a structure designed to enhance the insurer’s ability to deliver scalable, capital-efficient solutions, with the sidecar enabled by Sixth Street and Talcott’s open architecture asset management model.
The capital raise includes equity commitments from Talcott and Goldman Sachs Asset & Wealth Management (AWM) and its clients, along with a credit facility. Goldman Sachs AWM will serve as the investment manager for private asset strategies, while other third-party managers are expected to handle the remainder of West Grove Re’s assets.
Talcott said the sidecar is intended to support accelerated growth of its re/insurance platform, and that West Grove Re will rely on its partner ecosystem for functions including actuarial, finance, compliance, and risk. The insurer’s CEO and Goldman Sachs AWM private credit leadership also framed the move as broadening access to liabilities with varied costs of capital.