MetLife and General Atlantic announced in December the creation of Chariot Re, a Bermuda-based reinsurer that initially reinsures approximately $10 bn of annuities.
MetLife and General Atlantic projected an initial combined equity investment exceeding $1 bn, each holding about a 15% stake in the entity.
The remaining interests are held by third-party stakeholders, with Chubb expected to serve as an anchor investor, according to MetLife.
During MetLife’s fourth-quarter earnings presentation in February, Michel Khalaf explained that Chariot Re would improve MetLife’s capital flexibility and allow growth beyond its balance sheet capacity if required.
He noted that this initiative addresses increasing global demand for life and retirement products and enables MetLife to meet that demand through reinsurance.
The transaction was announced by MetLife, Chariot Re, and General Atlantic, co-sponsor of the independent Bermuda-based class E life and annuity reinsurer.
This transaction marked Chariot Re’s first deal, according to the companies’ joint statement.
MetLife completed a $10 bn inaugural reinsurance transaction with Chariot Reinsurance Ltd., covering structured settlement annuities and group annuity contracts tied to pension risk transfers.
Chubb leads the investment in Chariot Re, alongside other investors. MetLife Investment Management and General Atlantic act as Chariot Re’s exclusive external asset managers. They deliver an investment approach that combines scale, specialization, and long-term focus, the companies stated.
Cynthia Smith, a 30-year insurance veteran and former head of MetLife’s group benefits regional business, was named chief executive officer of Chariot Re.
We are launching Chariot Re from a position of strength with high-quality liabilities, a seasoned leadership team, and strong sponsors and investors, to meet growing demand for life and annuity reinsurance solutions globally.
Cynthia Smith, CEO of Chariot Re
Michel Khalaf, MetLife’s president and chief executive officer, described the transaction as “a significant step in establishing Chariot Re as a premier global provider of innovative reinsurance solutions.”
He stated that this partnership aligns with MetLife’s priorities of expanding its retirement platform and asset management business as part of its New Frontier strategy.
Chariot Reinsurance, introduced late last year by MetLife and General Atlantic, may expand in the future to assume third-party risks, according to MetLife’s chief executive.
After the transaction, MetLife remains responsible for all customer-related functions associated with the ceded business, the companies stated.
