Bermuda-based life and annuity reinsurance company Martello Re is in negotiations to raise a minimum of $800m in new equity, Bloomberg has reported.
Sources familiar with the matter told the news agency that the reinsurance company has received pledges from new and existing stakeholders.
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While the deal has not yet been finalised, one of the sources said that there is potential for the capital raise to increase further.
The initial equity backing for Martello Re’s launch in January 2022 totalled $1.65bn. It received contributions from a consortium including Centerbridge Partners, Massachusetts Mutual Life Insurance and Barings.
Centerbridge and Barings also serve as asset managers for Martello Re.
The company executed its first reinsurance transaction within two months of its establishment.
In March 2022, Martello Re undertook a reinsurance deal covering $14bn worth of in-force fixed annuity as well as fixed indexed annuity policies from a MassMutual subsidiary, which continued to administer the reinsured policies.
The creation of Martello Re was aimed at bolstering insurers in the capital-intensive life and annuity sectors.
Martello Re says it offers financial, investment and risk management expertise and also leverages these strengths with a modern, scalable platform to deliver tailored solutions, competitive pricing, as well as enhanced services for its client.
