Värde Partners and Agam Capital have formed a partnership to pursue the acquisition, reinsurance and management of life and retirement businesses globally.
This joint venture will combine the investment expertise of Värde Partners with the insurance solutions from Agam. Together, they will be able to price and manage complex insurance products with embedded and actuarial risks, globally.
It will act as a turnkey solution for financial modelling and enterprise risk management to give economic solutions to life insurance businesses, they claim.
Värde Partners partner and head of European financial services Elena Lieskovska said, “Given the current landscape of historically low interest rates and fundamental regulatory and accounting changes, we believe the opportunity across the $23 trillion life insurance industry is huge. Life insurance companies are increasingly seeking risk mitigation solutions for legacy blocks of liabilities with multi-dimensional risks.
“This is particularly true for complex annuity products, such as those with high guarantees or exposure to certain market risks, which typically attract a higher capital charge. We are excited to expand Värde’s financial services footprint into insurance, and partner with Agam to provide alternative solutions to the industry.”
In line with the new partnership, Värde Partners is set to invest $500m in life insurance, annuity, and reinsurance assets which will be supported by the joint venture. This agreement is part of Värde’s plans to broaden its investing sub-sectors.
Agam leverages machine learning, predictive data analytics and cloud computing to evaluate and assess insurance liabilities. The US-based company has focused on building cash flow streams which help to optimise insights and decisions.
In a joint statement, Agam co-founders Avi Katz and Chak Raghunathan said, “The need for multi-dimensional solutions to the complex changes facing the life insurance industry has never been greater. Against this backdrop, we believe the combination of Värde Partner’s core strengths in complex transactions together with Agam’s differentiated pALM platform will create a world-class insurance solutions provider.
“In particular, the Agam platform is designed to price, analyze and manage complex insurance products with embedded capital market risks and offers creative structures and solutions on a global basis.”
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