Ruby Re, Reinsurance Group of America’s (RGA) third-party life reinsurance sidecar, has now raised a total of $480 million in capital following the close of its second funding round, which is near the upper limit of the $400 million to $500 million target range for the Missouri-domiciled vehicle.
Launched in December 2023 with backing from a number of investors, including insurance-linked securities (ILS) specialist Hudson Structured Capital Management, Ruby Re writes U.S. asset-intensive life reinsurance business via RGA.
As we reported back in March, RGA was believed to be raising capital for its new sidecar amid plans to make the vehicle a key part of its more asset intensive business.
Today, RGA announced that the second round of funding has successfully closed, with commitments from global investment management firm, AllianceBernstein L.P., asset manager EnTrust Global, legacy specialist Enstar Group, and others.
“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. The continued backing and support from our investment partners validates our strategy and our strong track record in asset-intensive reinsurance,” said Leslie Barbi, Executive Vice President, Chief Investment Officer, RGA.
Together with the initial investments from Golub Capital, Hudson Structured Capital Management, and Sammons Financial Group, Ruby Re’s total capital raised has reached $480 million.
With the capital raised at the upper end of the target range, the Ruby Re sidecar will be able to write a significant amount of premium for life and health reinsurer RGA, enabling the company to benefit from a second balance sheet and bring capital from aligned investor partnerships into its underwriting.
The backing from AllianceBernstein marks the expansion of the investment manager’s insurance platform via a non-exclusive partnership with RGA. As part of the transaction, AllianceBernstein intends to manage the private alternative assets for RGA’s general account. Further, as part of its financial commitment, AllianceBernstein will be appointing a member to the Ruby Re Board of Directors.
“Our investment in Ruby Re affirms AB’s continued expansion of our insurance platform and growth of our insurance investment management business. Through our partnership with RGA, AB will participate in the growing asset-intensive reinsurance market,” said AB’s Head of Global Client Group and Head of Bernstein Private Wealth, Onur Erzan.
“We appreciate AB’s support and investment in Ruby Re, which is an important component of RGA’s growth strategy. This latest investment bolsters our asset-intensive capabilities and reflects AB’s confidence in the quality of RGA’s platform and belief in our ability to develop innovative solutions for our clients,” added Barbi.
AB’s Head of Strategy, Neil Jain, commented, “This collaboration and partnership with RGA accelerates our momentum in the insurance space, as earlier this year, we announced Geoff Cornell as our first-ever Chief Investment Officer of Insurance. We look forward to future opportunities to expand our overall insurance business, capabilities, and platform.”
For the second funding round, Jefferies acted as financial advisor and Oliver Wyman provided actuarial support, while Latham & Watkins LLP acted as legal advisors to both RGA and Ruby Re.
