F&G Annuities & Life Announces Strategic Partnership With New Reinsurer Backed by Blackstone Managed Funds
F&G Annuities & Life (NYSE: FG) has announced a strategic partnership with a new reinsurance vehicle backed by Blackstone managed funds, featuring approximately $1 billion in anticipated capital commitments. The partnership, effective August 1, 2025, establishes a forward flow reinsurance agreement on a quota share basis for certain fixed indexed annuity products.
The structure enables F&G to efficiently manage liabilities, reinsure a portion of fixed indexed annuity sales, and enhance its capital-light model. CEO Chris Blunt highlighted that this partnership will help move F&G toward a more fee-based, higher margin, and less capital intensive business model, with expected positive impacts on return on equity over time.
F&G Annuities & Life (NYSE: FG) ha annunciato una partnership strategica con un nuovo veicolo di riassicurazione supportato da fondi gestiti da Blackstone, con circa 1 miliardo di dollari in impegni di capitale previsti. La collaborazione, che entrer脿 in vigore il 1掳 agosto 2025, prevede un accordo di riassicurazione a flusso continuo su base quota parte per alcuni prodotti di rendite indicizzate fisse.
Questa struttura consente a F&G di gestire efficacemente le passivit脿, riassicurare una parte delle vendite di rendite indicizzate fisse e migliorare il suo modello a basso assorbimento di capitale. Il CEO Chris Blunt ha sottolineato che questa partnership aiuter脿 F&G a evolvere verso un modello di business pi霉 basato sulle commissioni, con margini pi霉 elevati e meno intensivo in capitale, con effetti positivi attesi sul rendimento del capitale nel tempo.
F&G Annuities & Life (NYSE: FG) ha anunciado una asociaci贸n estrat茅gica con un nuevo veh铆culo de reaseguro respaldado por fondos gestionados por Blackstone, con aproximadamente 1.000 millones de d贸lares en compromisos de capital previstos. La asociaci贸n, que entrar谩 en vigor el 1 de agosto de 2025, establece un acuerdo de reaseguro de flujo continuo basado en cuota para ciertos productos de anualidades indexadas fijas.
La estructura permite a F&G gestionar eficientemente las obligaciones, reasegurar una parte de las ventas de anualidades indexadas fijas y mejorar su modelo de bajo capital. El CEO Chris Blunt destac贸 que esta asociaci贸n ayudar谩 a F&G a avanzar hacia un modelo de negocio m谩s basado en comisiones, con mayores m谩rgenes y menos intensivo en capital, con impactos positivos esperados en el retorno sobre el capital con el tiempo.
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F&G Annuities & Life (NYSE : FG) a annonc茅 un partenariat strat茅gique avec un nouveau v茅hicule de r茅assurance soutenu par des fonds g茅r茅s par Blackstone, comprenant environ 1 milliard de dollars d'engagements de capitaux anticip茅s. Ce partenariat, effectif 脿 partir du 1er ao没t 2025, 茅tablit un accord de r茅assurance en flux continu sur une base de quote-part pour certains produits de rentes index茅es fixes.
Cette structure permet 脿 F&G de g茅rer efficacement ses passifs, de r茅assurer une partie des ventes de rentes index茅es fixes et d'am茅liorer son mod猫le 脿 faible intensit茅 capitalistique. Le PDG Chris Blunt a soulign茅 que ce partenariat aidera F&G 脿 茅voluer vers un mod猫le d'affaires plus bas茅 sur les frais, 脿 marge plus 茅lev茅e et moins intensif en capital, avec des impacts positifs attendus sur le retour sur fonds propres au fil du temps.
F&G Annuities & Life (NYSE: FG) hat eine strategische Partnerschaft mit einem neuen R眉ckversicherungsvehikel angek眉ndigt, das von Blackstone verwaltete Fonds unterst眉tzt und etwa 1 Milliarde US-Dollar an erwarteten Kapitalzusagen umfasst. Die Partnerschaft, die am 1. August 2025 in Kraft tritt, etabliert eine R眉ckversicherungsvereinbarung auf Quotenbasis f眉r bestimmte festverzinsliche indexgebundene Rentenprodukte.
Die Struktur erm枚glicht es F&G, Verbindlichkeiten effizient zu verwalten, einen Teil der Verk盲ufe von festverzinslichen indexgebundenen Renten r眉ckzuversichern und sein kapitalleichtes Modell zu verbessern. CEO Chris Blunt betonte, dass diese Partnerschaft F&G dabei helfen wird, sich zu einem geb眉hrenbasierten, margenst盲rkeren und kapital盲rmeren Gesch盲ftsmodell zu entwickeln, mit erwarteten positiven Auswirkungen auf die Eigenkapitalrendite im Laufe der Zeit.
- Strategic partnership secures approximately $1 billion in anticipated capital commitments
- Move towards fee-based, higher margin business model expected to improve ROE
- Enhanced capital efficiency through reinsurance of fixed indexed annuity products
- Access to long-term, on-demand growth capital through Blackstone backing
- Potential exposure to counterparty credit risk through reinsurance arrangement
- Implementation and transition risks in moving to new business model
Insights
F&G's $1B reinsurance partnership with Blackstone optimizes capital structure, improves ROE, and enhances growth potential with minimal risk exposure.
This strategic partnership between F&G and Blackstone represents a significant capital optimization move with approximately
The deal has several key implications for F&G's financial structure:
- Enhances F&G's capital-light model by transferring portions of fixed indexed annuity liabilities to the reinsurer
- Provides on-demand growth capital without diluting existing shareholders
- Shifts business mix toward more fee-based revenue streams with potentially higher margins
- Expected to expand return on equity (ROE) over time by reducing capital intensity
This transaction aligns with industry trends where insurance companies are increasingly partnering with alternative asset managers like Blackstone to optimize their capital structure. The reinsurance arrangement allows F&G to maintain its growth trajectory in the annuity market while efficiently managing its regulatory capital requirements.
From a strategic perspective, this partnership demonstrates management's focus on improving ROE while maintaining scale advantages. By reinsuring a portion of new annuity sales, F&G can deploy capital more efficiently while leveraging Blackstone's investment expertise and capital resources. The structure suggests minimal surrender of economics while gaining balance sheet flexibility鈥攁 favorable arrangement for existing shareholders.
This structure enables F&G to efficiently manage its liabilities, reinsure a portion of its fixed indexed annuity sales and enhance its capital-light model, which remains core to its strategy. The partnership also reflects the strength of F&G's strategic relationship with聽Blackstone and underscores our shared commitment to delivering innovative, value-enhancing solutions.
"We are very excited for this opportunity that recognizes Blackstone as a trusted partner and enables us to fund a portion of our growth with participation from private, long-term capital providers," said Chris Blunt, Chief Executive Officer. "This transaction positions us to further capitalize on growth opportunities that we see in the market and positions us to provide life and annuity solutions to more distribution partners, helping them meet their customer needs. The partnership will also move F&G toward a more fee-based, higher margin and less capital intensive business and is expected to be quite positive in our efforts to expand our return on equity over time."聽
Jefferies served as F&G's financial advisor and Sidley Austin LLP served as F&G's legal counsel in connection with the transaction.
About F&G
F&G Annuities and Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in
Forward-Looking Statements
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC).
Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
[email protected]
515.330.3307
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SOURCE F&G Annuities & Life, Inc.
FAQ
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