Chariot Reinsurance (Chariot Re), a Bermuda-based reinsurer announced by MetLife and General Atlantic last year, may expand to cover third-party risks in the future, according to MetLife’s CEO.
During MetLife’s fourth-quarter earnings presentation, President and CEO Michel Khalaf said Chariot Re will improve capital flexibility and support growth beyond balance sheet limits if necessary. He noted that rising global demand for life and retirement products makes reinsurance a key strategy for meeting market needs.
For the first few years, liabilities will come from MetLife. However, Chariot Re could eventually reinsure third-party liabilities.
MetLife liabilities assigned to Chariot Re include pension risk transfers and retirement income solutions, along with obligations from its Japan operations.
Scheduled to launch in the first half of 2025, Chariot Re will begin with an initial combined equity investment exceeding $1 bn, with MetLife and General Atlantic each holding approximately 15% ownership.
The remaining equity interests will be held by third-party stakeholders, including Chubb, which is expected to be an anchor investor.
Initially, MetLife plans to reinsure approximately $10 bn of liabilities to Chariot Re. These liabilities consist of structured settlement annuity contracts and group annuity contracts associated with pension risk transfers.
This move aims to enhance MetLife’s capital flexibility and support growth beyond its balance sheet capacity.
Cynthia Smith, a 30-year veteran of MetLife, is expected to lead Chariot Re as CEO. Smith has held various senior roles across strategy, finance, sales, underwriting, and technology transformation. Toby Srihiran Brown, MetLife’s Global Head of Reinsurance, and Graves Tompkins, General Atlantic’s Chief Operating Officer, are anticipated to join Chariot Re’s Board of Directors.
Bank of America is expected to provide financing for Chariot Re. Advisors to MetLife include Debevoise & Plimpton LLP and Oliver Wyman. Ardea Partners LP is serving as financial advisor to General Atlantic, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Eversheds Sutherland (US) LLP providing legal counsel.
MetLife’s President and CEO, Michel Khalaf, stated that the partnership with Chariot Re aims to address the growing global demand for life and retirement solutions.
We are looking forward to seeing our collective vision to create a world-class provider of innovative reinsurance solutions come to life, leveraging the insurance and joint investment expertise of MetLife and General Atlantic.
Michel Khalaf, President and Chief Executive Officer of MetLife
“With the demand for life and retirement solutions anticipated to grow around the globe, MetLife views a strategic partnership with Chariot Re as a powerful avenue to further serve those expanding needs.”
Bill Ford, Chairman and CEO of General Atlantic, emphasized that Chariot Re is positioned to deliver strong returns for investors and drive sustainable growth.
Chariot Re will leverage the combined investment management expertise of MetLife Investment Management and General Atlantic. The investment strategy will encompass public fixed income, private credit, private real estate, and private equity. This collaboration seeks to capitalize on MetLife’s origination capabilities and General Atlantic’s experience in global private markets.
The formation of Chariot Re reflects a trend of insurers partnering with investment firms to optimize capital and meet market demands. By transferring existing policies to reinsurance entities like Chariot Re, insurers can free up resources for new products, while investors gain access to stable, long-term assets.
