Ruby Re, sponsored by Reinsurance Group of America (RGA), has closed its second funding round, securing a total of $480m in capital.
Domiciled in Missouri, US, Ruby Re is a third-party life reinsurer.
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The latest funding round saw contributions from AllianceBernstein (AB), EnTrust Global and Enstar Group, among others.
AB also appointed a representative to Ruby Re’s board of directors.
The company did not disclose the additional terms of the funding.
RGA chief investment officer and executive vice-president Leslie Barbi said: “Ruby Re’s successful second capital raise, closing at the top of our targeted range, marks a major milestone for this innovative insurance sidecar platform. With significant committed capital now in place, Ruby Re is primed to scale its asset-intensive capabilities and capacity.
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By GlobalData“The continued backing and support from our investment partners validates our strategy and our strong track record in asset-intensive reinsurance.”
The second round of funding builds on initial investments from Golub Capital, Hudson Structured Capital Management (HSCM Bermuda) and Sammons Financial Group.
With the latest capital commitments, Ruby Re has nearly reached the upper end of its $400m–500m target range, the company noted.
Jefferies served as the financial advisor for the second funding round with actuarial support from Oliver Wyman and legal advice from Latham & Watkins.
Launched in December last year, Ruby Re was established to reinsure business from RGA, operating as a reinsurance sidecar vehicle without direct client interaction.
In the initial stage, RGA retroceded a block of $2.5bn of existing liabilities to Ruby Re, which also receives a quota share of all future qualifying business from RGA.
Established in 1973, RGA focuses on life and health reinsurance and financial solutions.
As of 30 September 2024, RGA managed nearly $4trn of life reinsurance in force and has assets totalling $120.3bn, the company noted.
In May, RGA named Axel André as its new executive vice-president, with the intention of promoting him to chief financial officer after a transition period.
