MetLife and General Atlantic will establish Chariot Reinsurance, a Bermuda-based Class E life and annuity reinsurance firm, set to launch in 2025.
Cynthia Smith, a 30-year MetLife veteran, is expected to become CEO of Chariot Re. Toby Srihiran Brown, MetLife’s Global Head of Reinsurance, and Graves Tompkins, General Atlantic’s COO, will serve on Chariot Re’s Board of Directors as representatives of their respective firms.
MetLife and General Atlantic anticipate Chariot Re will have an initial combined equity investment of over $1 bn, and that they will each initially own approximately 15% of the equity in Chariot Re. The remaining equity interests will be held by third-party stakeholders, including Chubb, a global leader in property and casualty insurance, which is expected to be an anchor third party investor.
MetLife anticipates initially reinsuring to Chariot Re an approximate $10 bn block of liabilities composed of structured settlement annuity contracts and group annuity contracts associated with pension risk transfers. The transaction is subject to required regulatory approvals and the final amount of initial equity raised to support Chariot Re.
MetLife’s ongoing commitment to its policyholders will remain unchanged following the transaction and MetLife will continue to be responsible for all customer-related functions. Going forward, MetLife Investment Management and General Atlantic will exclusively provide asset management services to Chariot Re.
We aim to create a leading provider of reinsurance solutions by leveraging the combined insurance and investment expertise of MetLife and General Atlantic.
Michel Khalaf, President and CEO of MetLife
“With global demand for life and retirement solutions on the rise, our strategic partnership with Chariot Re will help meet these growing needs”, Michel Khalaf stated.
Through the execution of Investment Management Agreements, Chariot Re will leverage the combined global investment management capabilities of MetLife Investment Management and General Atlantic, including public fixed income, private credit, private real estate, and private equity.
MetLife Investment Management, with expertise in Public Fixed Income, Private Capital and Real Estate, is one of the largest global managers of life insurance assets and General Atlantic is a leading global investor in the private markets with expertise across Growth Equity, Credit, Climate, and Sustainable Infrastructure.
Bill Ford, Chairman and Chief Executive Officer of General Atlantic, said: “General Atlantic and MetLife share a deep commitment to investment excellence, thoughtful risk management, and long-term value creation.”
Guided by MetLife’s robust origination capabilities and General Atlantic’s nearly 45 years of leadership in global private markets, we believe that Chariot Re will be well-positioned to deliver strong returns for its investors and drive sustainable growth going forward
It is expected that Chariot Re will be led by Cynthia Smith, a 30-year veteran of MetLife, who will serve as CEO. Most recently, Smith led MetLife’s Group Benefits Regional Business. Over the course of her career at MetLife, she has served in a variety of senior roles across several businesses and functions including strategy, finance, sales, underwriting, and technology transformation.
It is anticipated that Toby Srihiran Brown, Global Head of Reinsurance at MetLife, will represent the company on Chariot Re’s Board of Directors. It is also expected that Graves Tompkins, Chief Operating Officer at General Atlantic, will represent the firm on Chariot Re’s Board of Directors.
Bank of America is expected to provide financing for Chariot Re. Debevoise & Plimpton LLP and Oliver Wyman are serving as advisors to MetLife. Ardea Partners LP is serving as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Eversheds Sutherland (US), LLP are serving as legal counsel to General Atlantic.
