FGH Parent, along with its subsidiary Fortitude Re, announced that Fortitude Life Insurance & Annuity Company (FLIAC) is entering the funding agreement-backed notes (FABN) market.
The company’s first offering to institutional investors is scheduled to settle on Oct. 6. The notes will be issued by Fortitude Global Funding, an independent Delaware statutory trust, and are supported by a funding agreement from FLIAC.
Alan Stewart, group treasurer at Fortitude Re, said the move is part of the company’s broader strategy to diversify its capital sources.
“Entering this market aligns with our ongoing growth strategy.” He noted that the approach is designed to reinforce the company’s balance sheet and provide new opportunities for expansion, while continuing to deliver on commitments to stakeholders.
The private offering has been priced at US$500 million in aggregate principal amount, with the notes carrying a 4.625% coupon and maturing on Oct. 6, 2028. Proceeds from the issuance will be used by the trust to purchase a funding agreement from FLIAC.
The notes are expected to receive ratings of BBB+ from Fitch and A3 from Moody’s, consistent with FLIAC’s current financial strength ratings.
Fortitude Re’s financial strength has recently been recognized by major rating agencies. In December last year, Moody’s Investors Service assigned A3 Insurance Financial Strength Ratings to Fortitude Re’s three main operating entities, including Fortitude Reinsurance Co. Ltd., Fortitude International Reinsurance Co. Ltd., and Fortitude Life Insurance and Annuity Co. The outlook for all ratings is stable.
Fitch also affirmed the group’s BBB+ ratings and raised its outlook to positive, citing the company’s growth in the global block and flow reinsurance markets, expanding business diversification, and improving profitability.
Earlier this year, Fortitude Re also launched a redesigned website, fortitude-re.com, which the company says is aimed at enhancing engagement with clients, partners, and potential employees.
The updated platform features improved navigation, expanded content, and highlights the company’s reinsurance solutions, financial information, investment strategies, and career opportunities.
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