Reinsurance Group of America, a global leader in life and health reinsurance, has announced that its subsidiary, Ruby Re, has raised a total of $480m following a successful second capital round.
Ruby Re, a Missouri-based life reinsurance firm, received additional backing from investors AllianceBernstein L.P. (AB), EnTrust Global, and Enstar Group, among others.
This new round also sees AB appointing a member to Ruby Re’s board, further deepening its strategic ties with the company.
The recent investment follows Ruby Re’s goal to provide robust and scalable reinsurance offerings, placing it at the forefront of innovative reinsurance solutions within the life insurance sector.
The funds will be used to expand Ruby Re’s asset-intensive capabilities, allowing the platform to enhance its reinsurance offerings and increase operational capacity.
The new capital injection, alongside strategic support from Ruby Re’s investors, positions the firm for significant growth and strengthens its capacity to deliver on its asset-intensive reinsurance solutions.
Ruby Re’s capital raise brought the company close to the high end of its projected $400m to $500m target range, underscoring strong investor interest.
The initial funding round, which featured commitments from Golub Capital, Hudson Structured Capital Management (HSCM Bermuda), and Sammons Financial Group, set the stage for this latest funding success.
RGA’s Executive Vice President and Chief Investment Officer Leslie Barbi expressed confidence in Ruby Re’s growth trajectory, stating, “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.” Barbi added, “The continued backing and support from our investment partners validates our strategy and our strong track record in asset-intensive reinsurance.”
Onur Erzan, Head of Global Client Group and Head of Bernstein Private Wealth at AllianceBernstein, highlighted AB’s enthusiasm for the reinsurance sector, noting, “Our investment in Ruby Re affirms AB’s continued strategic focus on the insurance market and in growing our investment management business. We are thrilled to partner with RGA on this differentiated platform and to participate in the asset-intensive reinsurance market.”
In support of the transaction, Jefferies acted as financial advisor, with Oliver Wyman providing actuarial insights. Legal counsel for RGA and Ruby Re was provided by Latham & Watkins LLP, though additional terms of the investment were not disclosed.
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