Allianz has announced the establishment of Sconset Re Ltd, a new independent strategic reinsurance platform.
The Bermuda-based entity will reinsure a US$4 billion block of annuity liabilities and has entered into a forward flow agreement to reinsure between US$5 billion and US$10 billion of new business.
The majority of Sconset Re’s investment portfolio will be managed by PIMCO, Allianz’s asset management subsidiary. The platform will also be capitalized through equity investments from institutional partners, including Voya Financial and Antares Capital LP, both of which will manage portions of Sconset Re’s asset portfolio.
The creation of Sconset Re reflects Allianz’s ongoing strategy to leverage growth opportunities in the US life insurance and asset management markets.
Deutsche Bank served as the sole financial advisor to Allianz for the transaction. The bank also acted as the sole arranger for a debt financing facility provided to Sconset Re.
Meanwhile, on its Capital Markets Day 2024, Allianz SE announced ambitious financial goals extending to 2027, building on its achievement of key 2024 targets.
Amid economic uncertainty, Allianz said that it plans to grow its customer base by introducing advanced protection and retirement solutions and improving service delivery.
The firm highlighted that its strategy revolves around three priorities: driving growth by acquiring new customers and increasing retention, improving productivity with efficiency measures and generative AI, and reinforcing resilience through a refined capital management framework.
In its property-casualty segment, Allianz projects annual revenue growth of 6-7% and an operating profit of approximately €9.5 billion by 2027, with a combined ratio of 92-93%.
In life and health insurance, it expects an operating profit of around €6 billion by 2027, with a new business margin of at least 5% and over 90% of new business value derived from preferred product lines.
In asset management, Allianz forecasts an operating profit of approximately €4 billion, a cost-income ratio of around 60%, and an 8% annual growth rate in third-party assets under management.
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