Ancient acquires F&G Annuities & Life

Ancient Financial, a fledgling reinsurance platform backed by New York hedge fund veteran Alexander Klabin, has finalized an acquisition of F&G Life Re Ltd., marking the firm’s inaugural transaction. The acquisition will see the Bermuda-based entity rebranded as Ancient Re upon its anticipated closing on March 1, 2026. F&G will retain a strategic link to the acquired assets through a forward-flow reinsurance arrangement for multi-year guaranteed annuity new business. While financial terms remain undisclosed, F&G reported expected net proceeds of approximately $300 million in its Q4 2025 earnings.

The specifics of the transaction include F&G's prior recapture of about $900 million in statutory liabilities from F&G Life Re, with $600 million transferred to a third-party reinsurer. The remaining in-force block, encompassing around $1.9 billion in assets under management (AUM), will be shifted to Ancient Re control post-closing. This move aligns with F&G’s strategy to monetize non-essential operations, as noted by CEO Chris Blunt, while enabling Ancient Financial to solidify its foundational reinsurance and asset management platform.

Strategically, Ancient Financial's entrance into the life and annuity reinsurance market builds on the industry's historic performance. The US annuity market displayed robust growth, with LIMRA reporting record-breaking sales in successive years, including $434.1 billion in 2024. This momentum underscores the sector's appeal, attracting substantial attention from private equity-backed and independent reinsurance ventures. Ancient Financial seeks to establish itself amid significant competition from Bermuda-based heavyweights like Apollo-backed Athene and KKR’s Global Atlantic.

The competitive backdrop is shaped by a thriving reinsurance landscape in Bermuda, where firms like Prismic Life recently concluded sizeable capital raises. AM Best highlights that PE-owned insurers now command nearly 10% of the industry's admitted assets, indicating a shift in capital sources powering the market. Despite its relatively modest $1.9 billion in AUM compared to Athene's $192 billion, Ancient Financial distinguishes itself with its independent governance structure, free from pre-existing insurer or asset manager control, endorsed by equity commitments from Ancient Management LP and a consortium of family offices and institutional investors.

Due diligence and regulatory compliance will be crucial for the deal’s closure, particularly given Bermuda's ongoing regulatory reforms in the reinsurance sector. As Ancient Financial advances toward its 2026 transaction finalization, industry stakeholders will monitor how effectively it integrates F&G's assets and leverages new reinsurance agreements to enhance its market footprint.