The Carlyle Group (NASDAQ: CG) and T&D Holdings (TYO: 8795) have completed their acquisition of a 76.6% interest in Fortitude Group Holdings, whose group companies include Fortitude Re, from American International Group, Inc. (NYSE: AIG). The transaction, which was first announced in November 2019, closed following receipt of required regulatory approvals and customary closing conditions. At closing, AIG received approximately USD 2.2 billion in sale proceeds, including the purchase price of USD 1.8 billion along with additional consideration paid in accordance with the terms of the purchase agreement.

This transaction furthers AIG’s and Carlyle’s efforts to stand up Fortitude Re as an independent company and position it as a premier provider of retroactive reinsurance and legacy run-off management solutions for long-dated, complex risks to the global insurance industry. The transaction will enhance Carlyle’s ability to support Fortitude Re’s growth plans, provide Fortitude Re access to Carlyle’s wide array of investment strategies and position it for long-term success. T&D brings additional industry and international expertise to develop Fortitude Re’s strategically differentiated capabilities. With the backing of Carlyle, T&D and AIG, Fortitude Re will pursue global opportunities to successfully acquire and manage legacy insurance portfolios.

Hirohisa Uehara, T&D’s Representative Director and President, said, “Despite increasing uncertainty due to the COVID-19 outbreak around the globe, the successful completion of this transaction is significantly meaningful for T&D and a strategically important step towards continued growth of Fortitude Re and our future business collaboration. T&D will focus on supporting Fortitude Re by contributing our expertise in life insurance business in Japan to create synergies with our domestic life insurance business as well as to diversify our business portfolio. We look forward to working together with Fortitude Re, AIG and Carlyle in the closed block business.”

Appleby Bermuda Partner Brad Adderley commented, “It was a pleasure acting for T&D Holdings in relation to their investment in Fortitude Re and it’s an honour to help grow the life market in Bermuda with such an important life reinsurance structure.”

Share
Twitter LinkedIn Email Save as PDF
More Deals
24 Jan 2023 | Deals

Appleby advises Wejo Group Limited on its entry into a business combination with TKB Critical Technologies I

Appleby is acting as Bermuda and Cayman Islands counsel to Nasdaq-listed Wejo Group Limited, a globa...

16 Jan 2023 | Deals

Appleby Bermuda advised on Kuvare Holdings Launch of USD 400 Million Kindley Re Sidecar

Appleby advised Kuvare Holdings (Kuvare) on its formation of Kindley Re Ltd. (Kindley Re), a newly f...

8 Dec 2022 | Deals

Appleby Bermuda advised African Risk Capacity Ltd on its first epidemic risk insurance product

Appleby Bermuda advised ARC Ltd, a long-standing client, on its first parametric insurance product a...

26 Sep 2022 | Deals

Appleby Supports Northedge Investment into Friend MTS, a Leading Global Provider of Video Content Security Services

Appleby is proud to have acted as Jersey and Bermuda counsel, alongside Gateley PLC, to private equ...

23 Aug 2022 | Deals

Appleby Bermuda advised CoinZoom on its Digital Asset Business licence

Appleby advised CoinZoom, Inc. on its application for a Class M Digital Asset Business licence pursu...

11 May 2022 | Deals

Appleby Bermuda Advised Relm II In Its Incorporation And Registration To Provide Reinsurance Capacity In The Crypto Space

Appleby served as Bermuda counsel to Relm Insurance II Ltd. (Relm II) in connection with its incorpo...

5 May 2022 | Deals

SkyRidge Re team wins ‘Life Transaction of the Year’ at the Trading Risk Awards 2022

Congratulations to the SkyRidge Re team for winning ‘Life Transaction of the Year’ at the Tradin...

19 Apr 2022 | Deals

Appleby Bermuda Advised Swiss Re In Innovative USD1.15bn Transaction Combining Bank Financing And Insurance-Linked Securities

Appleby acted as Bermuda counsel to Swiss Re, a leading wholesale provider of reinsurance, insurance...

4 Mar 2022 | Deals

Appleby Bermuda advised S&P Global in its USD 140 billion merger with IHS Markit

Appleby acted as Bermuda counsel to S&P Global, the world's foremost provider of credit ratings,...

2 Feb 2022 | Deals

Appleby acted as Bermuda counsel to Integral ILS in relation to its USD 1.4 billion in total investor commitments

Appleby acted as Bermuda counsel to Integral ILS Ltd., the independent Insurance-Linked Securities (...