Fortitude Re and Carlyle Launch $700 Million Asia Reinsurance Sidecar

Fortitude Re and Carlyle Group have jointly launched a new reinsurance sidecar, Fortitude Carlyle Asia Reinsurance Ltd. (FCA Re), aimed at strengthening their presence in Asia’s growing life and annuity markets. The vehicle, domiciled in Bermuda, is backed by more than $700 million in deployable capital, combining both equity and anticipated debt capacity.

According to Fortitude Re, FCA Re has attracted substantial equity commitments from a diverse group of global institutional investors, alongside Fortitude Re and Carlyle.

This strategic collaboration positions FCA Re as a long-term vehicle for providing capital-efficient reinsurance solutions across Asia.

Alon Neches, Chief Executive Officer of Fortitude Re, highlighted the company’s strong commitment to the Asian market:

“Fortitude Re has already reinsured approximately $15 billion in reserves on behalf of clients in Asia, and we are dedicated to making further investments in the region. FCA Re will help us continue delivering innovative solutions that drive our clients’ strategies forward.”

Brian Schreiber, Partner at Carlyle and Head of Carlyle Insurance Solutions, said the initiative aligns with Carlyle’s broader strategic focus: “FCA Re is a natural extension of Carlyle’s strategy to deliver integrated asset, capital, and liability solutions to insurance clients worldwide.”

Under the arrangement:

• Fortitude Re will serve as insurance sponsor, managing reinsurance transactions and client relationships.
• Carlyle Group will act as asset management sponsor, overseeing investment and capital deployment.

Once FCA Re’s full capital is deployed, the sidecar is expected to contribute approximately $10 billion in fee-earning assets under management (AUM) to Carlyle.

Initially, the company will assume a portion of Fortitude Re’s existing liabilities while also reinsuring sections of its future transactions in Asia. The move is designed to support Fortitude Re’s growth strategy within the Asian life and annuity markets, where demand for reinsurance capacity continues to accelerate.

The launch of FCA Re reflects the increasing demand across Asia for capital-efficient reinsurance models, driven by:

• Ageing demographics,
• Long-term liability management needs, and
• Rising regulatory and solvency pressures.

According to BestWire, Asia remains “one of the most dynamic and attractive opportunities in global reinsurance,” particularly for firms that can offer flexible and capital-efficient solutions.

Currently, Fortitude Re manages $101 billion in general and separate account insurance reserves and oversees more than 4 million policies worldwide.

Earlier in 2025, Unum Life Insurance Company of America, a subsidiary of Unum Group, completed a $3.4 billion long-term care reinsurance deal with Fortitude Reinsurance Co. Ltd, transferring a portion of its long-term care and disability portfolios to Fortitude Re.

Underwriting entities of FGH Parent L.P., the parent organisation of Fortitude Re, hold A (Excellent) financial strength ratings from AM Best, underscoring the company’s solid risk profile and operational resilience.

With the launch of FCA Re, Fortitude Re and Carlyle are poised to capitalise on Asia’s expanding insurance landscape—combining investment expertise with reinsurance innovation to serve one of the fastest-growing markets in the world.