Talcott launches $1bn Bermuda sidecar with Goldman Sachs for annuities
By IAN Editorial Desk – Talcott Financial Group today launched West Grove Re, a Bermuda-domiciled reinsurance sidecar with Goldman Sachs, which has raised...
Talcott Financial Group today launched West Grove Re, a Bermuda-domiciled reinsurance sidecar with Goldman Sachs, which has raised about $1bn to support a portion of Talcott’s US annuities business. The structure adds third-party capital and a credit facility alongside equity from both partners, giving Talcott another source of capacity for annuity liabilities.
West Grove Re will share premiums and losses on part of Talcott’s US-based annuities book in a structure consistent with quota share reinsurance, where cedant and reinsurer participate in the same proportion of premiums and claims. The available announcement does not disclose the treaty’s duration, the premium-sharing mechanics, or the loss-sharing formula, so the public detail stops short of the exact economics of the arrangement.
The sidecar is based in Bermuda, with Goldman Sachs Asset Management set to run its private-asset strategies, while other third-party firms are expected to manage the rest of the portfolio.
Capital for the vehicle included equity commitments from Talcott, Goldman Sachs Asset & Wealth Management and its clients, as well as a credit facility.
The partners said West Grove Re would draw on Talcott’s insurance expertise and Goldman Sachs’s access to client capital and private credit capabilities. Talcott will also provide support services across actuarial, finance, compliance and risk functions, which means the operating infrastructure for the vehicle will sit closely alongside Talcott’s existing platform.
Imran Siddiqui, CEO of Talcott, described establishing West Grove Re as “another important step” in Talcott’s growth strategy. Legal advice to Talcott came from Cleary Gottlieb Steen & Hamilton LLP, Kennedys Law LLP and Kirkland & Ellis LLP.
Sources: am.gs.com
