According to reports, Japan Post Insurance anticipates holding a majority stake, exceeding 50%, in the new vehicle. This development follows a 2023 tripartite agreement between Japan Post Insurance, private equity firm KKR, and Global Atlantic, which resulted in Japan Post Insurance investing in a Global Atlantic-sponsored reinsurance co-investment vehicle, believed to be a vintage of the Ivy Re sidecar.
Global Atlantic established the Ivy Re reinsurance co-investment structure in Bermuda in 2020, using it to attract third-party capital for major life reinsurance transactions. Japan Post Insurance aims to diversify its investment portfolio by participating in the growing global life and annuity reinsurance markets.
The reports also state that a memorandum of understanding has been executed between Japan Post Insurance, KKR, and Global Atlantic, initiating discussions on the new investment. The proposed vehicle will participate in Global Atlantic’s insurance and reinsurance operations and may also pursue strategic opportunities. Negotiations on the terms and conditions are underway, with Japan Post Insurance expecting to finalize its investment decision within three months and deploy capital as early as 2026.
The use of third-party investor capital in life and annuity reinsurance sidecars is becoming increasingly common, reflecting investor interest in participating in these businesses through efficient investment vehicles.
