Bermuda-based Warwick Re has announced its second deal after signing a reinsurance agreement with a US insurer over an in-force block of US annuity business.
The deal with the unnamed life insurer will see Warwick Re take on the underlying portfolio risks while the cedant continues to service and administer the policies.
The deal also includes an agreement by Warwick Re to provide quota share reinsurance for future fixed annuity flow business.
According to a press release by the reinsurer, the deal will result in its asset base increasing by $550m.
The reinsurer’s founder and CEO, Chris McGlashan, said that the US annuity market was a strategic focus for the firm and complemented its existing UK bulk purchase annuity (BPA) exposure.
Warwick Re’s announcement came less than a week after the firm revealed that it had signed a deal with UK BPA specialist Just Group that sees the reinsurer take on $550m of portfolio and longevity risk.
Bermuda-based reinsurers have been active players in the life sector so far in 2024. At the start of January, Resolution Re inked a $2.5bn deal related to in-force annuities issued by a UK insurer.
