F&G Annuities & Life has entered into a strategic reinsurance agreement with a new reinsurance vehicle supported by funds managed by Blackstone, the company announced.
The structure, which includes approximately US$1 billion in expected capital commitments, is intended to provide long‑term growth capital on demand for F&G through a forward‑flow quota share reinsurance arrangement. The agreement took effect on Aug. 1.
Under the terms of the partnership, the reinsurer will assume a portion of F&G’s fixed indexed annuity sales, which the company said supports its broader capital‑light operating strategy. The structure is aimed at enabling F&G to manage liabilities more efficiently while continuing to expand annuity offerings.
F&G described the partnership as aligned with its ongoing relationship with Blackstone and part of its strategic direction to incorporate long‑term private capital into its reinsurance framework.
Chris Blunt (pictured above), chief executive officer of F&G, said the transaction recognizes Blackstone as a trusted partner and provides an avenue to fund part of the company’s growth through participation from long‑term private capital.
"This transaction positions us to further capitalize on growth opportunities that we see in the market and positions us to provide life and annuity solutions to more distribution partners, helping them meet their customer needs,” Blunt said.
F&G’s institutional channel has contributed materially to its diversification strategy. In its first year, the company surpassed US$2 billion in institutional‑market sales, driven by funding agreement backed note (FABN) issuances and pension risk transfer (PRT) deals.
The initial entry into the FABN market came in mid‑2021, when F&G issued its first US$750 million note through an unaffiliated Delaware trust. That issuance marked the company's launch into the institutional market and depended on Blackstone Insurance Solutions to manage the underlying assets to align with F&G’s liabilities.
As of late 2024, F&G held A‑ rated financial strength from S&P and Fitch, and an A3 from Moody’s.
The agreement also comes amid expansion in Blackstone’s insurance asset‑management business. In recent quarters, its combined credit and insurance segment AUM rose approximately 23 % year‑over‑year, including more than US$250 billion in assets managed for insurers.
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