Cayman-based Ludlow Re has been launched by Hildene Capital and has seed capital of $1 billion

Hildene Capital Management has announced the formation of Ludlow Re SPC, a Cayman Islands-based, Class B(iii) insurance company.

Ludlow Re will offer reinsurance to the global insurance market and, as part of its inaugural transaction, will reinsure approximately $1 billion of fixed index annuity reserves through a quota share agreement entered into with a US-based life insurance carrier.

Brett Jefferson, founder and co-chief investment officer of Hildene, commented: “Since Hildene’s inception in 2008, we have taken a prudent approach to managing the size and scale of our assets and will continue to execute on this approach with Ludlow Re — opportunistically adding to our portfolio only when we believe we can confidently invest in assets that produce attractive returns for our clients.”

Dushyant Mehra, co-chief investment officer of Hildene, added: “We believe insurers and asset managers can benefit from a symbiotic relationship — money managers receive access to insurers’ expansive capital base while insurers receive access to sophisticated investment opportunities they may not have otherwise.”

Ludlow Re received its B(iii) insurance license from the Cayman Islands Monetary Authority in September 2022.