Credit-focused firm Hildene added to its insurer business lines with a strategic alliance with SILAC Insurance Company, a leading U.S. annuity provider with $2 billion in general account assets.
The $12 billion Hildene takes a strategic minority ownership interest in SILAC and will handle the investment management of the company’s general account assets.
The deal follows the launch of Ludlow Re SPC, Ltd., a Class B(iii) insurance company based in the Cayman Islands that will offer reinsurance to the global insurance market in November. SILAC also has a $2.5 billion quota share agreement with Ludlow, which will provide reinsurance to SILAC’s annuity products.
The new alliance brings Ludlow Re AUM to $3.5 billion.
Founder and Co-Chief Investment Officer of Hildene Brett Jefferson added, “Our alliance with SILAC underscores the confidence we have in the Company’s ongoing success and Hildene’s ability to source attractive investment opportunities for longer-term capital. We look forward to a symbiotic relationship with SILAC for years to come as we continue to scale the Ludlow Re platform.”
Officials said that the alliance was approved by applicable regulators and closed in late December 2022.
“I couldn’t be more pleased to form this strategic alliance with Hildene, a well-recognized credit investor with a disciplined approach to portfolio management,” said Stephen Hilbert, chairman and CEO of SILAC. “This transaction — along with our increased bank facility — accomplishes SILAC’s goal of managing our risk-based capital company action level at over 300%.”