AIG Launches Fortitude Re in Partnership with Carlyle Group

American International Group (AIG) has created a new run-off reinsurer called Fortitude Re in collaboration with global alternative asset manager The Carlyle Group.
 
The companies announced in August 2018 that they had entered into a partnership to build AIG’s Bermudian legacy reinsurance platform, DSA Re (now Fortitude Re), into a standalone provider of reinsurance.

Source: Reinsurance News | Published on November 15, 2018

AIG Q1 net income

As part of the agreement, Carlyle has completed its acquisition of a 19.9% stake in Fortitude Group Holdings, LLC, whose group companies operate as Fortitude Re.

The transaction closed following receipt of regulatory approval and satisfactions of other customary closing solutions.

In its original announcement, AIG said that the partnership would also involve a strategic asset management relationship whereby DSA Re and AIG would allocate $6 billion of assets into various Carlyle managed strategies across corporate private equity, real assets, and private credit.

“We are hard at work building Fortitude Re for long-term success,” said James Bracken, Chief Executive Officer (CEO) of Fortitude Re. “The closing of Carlyle’s investment and brand launch are two key milestones on that journey.”

Brian Schreiber, Managing Director and Co-Head of Carlyle Global Financial Services Partners, also commented: “We look forward to working with our partners at AIG and Fortitude Re to grow the business and extend Carlyle’s asset management platform.”

AIG first launched DSA Re in February 2018 as a composite reinsurer of its legacy insurance portfolio, allowing AIG to consolidate its non-core insurance lines under one specialized run-off team.

The company said that the rebrand under the name of Fortitude Re represents its focus on and expertise in managing long-dated, complex risks.