Home›Insurance›Reinsurance›Talcott launches West Grove Re, a $1 billion reinsuran…

Talcott launches West Grove Re, a $1 billion reinsurance sidecar

The Bermuda-domiciled vehicle will take on a quota share of certain Talcott U.S. annuity liabilities, and the deal is expected to close in the second quarter of 2021 subject to approvals.

Reported · Written up by our desk · Reinsurance

Talcott Financial Group has launched West Grove Re, a Bermuda-domiciled reinsurance sidecar formed in partnership with Goldman Sachs, raising approximately $1 billion through equity commitments from Talcott, Goldman Sachs Asset & Wealth Management, and its clients, plus a credit facility, according to Coverager.

West Grove Re is set up to support Talcott’s growth strategy by providing access to third-party capital in a more capital-efficient way. The sidecar will assume a quota share of certain Talcott-originated U.S. annuity liabilities, and Talcott will provide actuarial, finance, compliance, and risk management support, while Goldman Sachs Asset & Wealth Management will oversee private asset investment strategies and additional third-party managers are expected to handle the rest of the portfolio.

Coverager also reported that the transaction is expected to have a combined value of about $250 million, including ceding commission and capital released over time. The parties expect the deal to close in the second quarter of 2021, pending regulatory approvals and other customary closing conditions.

More like this

Sources