26North Re finalizes reinsurance transaction for life insurance portfolio

26North Reinsurance Holdings (26N Re) has announced the successful closure of a $4.9 billion reinsurance deal with Life Insurance Company of the Southwest (LSW), part of the National Life Group (NLG).

This transaction increases 26North’s assets under management to an estimated $22 billion.

Under this agreement, 26N Re, through its subsidiaries, will provide reinsurance for the portfolio of LSW’s multi-year guarantee and fixed index annuity products. Furthermore, 26N Re has committed to quota share reinsurance for new fixed annuities issued by LSW in the future.

NLG also holds a minority ownership stake in the 26N Re subsidiary tasked with reinsuring the policies transferred from LSW.

Josh Harris, founder of 26North, expressed his views on the transaction’s significance, both for the market and the company itself.

“This transaction will significantly scale our reinsurance business and continue to diversify 26North’s platform,” Harris said. “We believe that our culture of prudent risk management and strong governance allows 26N Re to partner with the highest-quality cedants who are looking to leverage our long-term capital and asset management expertise.”

Cole Charnas, partner at 26North, also weighed in on the transaction, saying: “The strategic transaction with NLG further advances 26N Re’s position as a reinsurer of choice in the annuity marketplace and solidifies its reputation as a leader in block reinsurance and forward flow transactions.”

Mehran Assadi, chairman, CEO, and president of National Life Group highlighted the historical reliability of his organization as it enters this major reinsurance agreement.

“National Life has been keeping its promises to policyholders for 175 years. This strategic partnership with 26North will expand our opportunity to serve Middle America for our next 175 years,” Assadi said.

The transaction received advisory support from Agam Capital, which utilized its pALM asset and liability management system and the operational framework of the Agam Bermuda ISAC platform. Kirkland & Ellis LLP served as legal advisor to 26N Re.

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