Reinsurance Group of America announced that Ruby Reinsurance Company (Ruby Re), a Missouri-based third-party life reinsurance firm, has secured $480 million in capital following a second round of funding.
This round included contributions from AllianceBernstein (AB), EnTrust Global, and Enstar Group, among others, with AllianceBernstein also gaining a seat on Ruby Re’s board of directors.
Combined with the initial investments from Golub Capital, Hudson Structured Capital Management Ltd (HSCM Bermuda), and Sammons Financial Group, Ruby Re's capital is now at the upper limit of its $400 million to $500 million target range.
Leslie Barbi (pictured above), executive vice president and chief investment officer at RGA, described Ruby Re’s second capital raise as an important step for the company’s insurance sidecar platform.
With significant committed capital now in place, Ruby Re is primed to scale its asset-intensive capabilities and capacity,” Barbi said. “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, stated that AB’s investment in Ruby Re reflects the firm’s strategic focus on the insurance sector.
“We are thrilled to partner with RGA on this differentiated platform and to participate in the asset-intensive reinsurance market,” Erzan said.
Jefferies served as the financial advisor, while Oliver Wyman provided actuarial support. Legal advisory for RGA and Ruby Re was provided by Latham & Watkins LLP.
Meanwhile, RGA also recently posted third-quarter results marked by a dip in net income but achieved record performance in adjusted operating income.
The company reported net income available to shareholders of $156 million, or $2.33 per diluted share, down from $287 million, or $4.29 per diluted share, in the same period last year.
Adjusted operating income reached $242 million, or $3.62 per diluted share, compared to $372 million, or $5.57 per diluted share, year-over-year. Excluding notable items, adjusted operating income climbed to $410 million, or $6.13 per diluted share, a quarterly high.
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