- F&G launched a new reinsurance sidecar in partnership with Blackstone Managed Funds, effective August 1, 2025, with approximately $1 billion in anticipated capital commitments.
- The sidecar is designed to provide long-term, on-demand capital to support growth and shift towards a more fee-based, higher-margin, less capital-intensive business model.
- The vehicle is managed by Blackstone-owned Fort Green Reinsurance STC Limited, a Cayman-based reinsurer, and does not involve F&G holding ownership stake in the reinsurer.
- The reinsurance sidecar will enable F&G to scale in an accretive and capital-efficient manner, complementing existing flow reinsurance agreements.
- This strategic capital solution is expected to expand F&G's fee-based earnings power over time, supporting growth in FIA products and other segments.
- The company plans to continue utilizing existing flow reinsurance partnerships for MYGA sales and manage capital to regulatory and rating agency requirements, including maintaining RBC at or above 400%.
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- Brighthouse is finalizing a transition to separate hedging strategies for in-force variable annuity and Shield books, expected to complete by the end of September 2025.
- The new approach aims to improve transparency, reduce volatility, and better align with ESG considerations.
- Revisions to hedges include managing VA and Shield businesses separately, which is expected to simplify risk management and potentially improve capital efficiency.
- Ryan Re, an underwriting MGU, will be the exclusive reinsurance underwriter for Nationwide's reinsurance renewal rights from Markel, creating a diversified portfolio with new relationships.
- The deal is part of a broader strategic alliance with Nationwide, expanded through a 10-year renewal agreement.
- The transaction is expected to be accretive starting in 2026, with temporary margin impacts in late 2025 due to talent investments.
- Ryan Re's capabilities are primarily underwriting, not broking, and it enhances Ryan Specialty's scale, geographic reach, and product scope.
- Management expressed high confidence in renewing a significant portion of the $1.2 billion reinsurance premium market, emphasizing the strength of their underwriting team.
- RenaissanceRe has significantly diversified and grown its underwriting portfolio, including constructing its largest net retained property catastrophe portfolio to date.
- 80% of recent premiums in Florida were at private terms above market rates, indicating strategic positioning and premium quality.
- The company is expanding across classes, leveraging scale to secure better-than-market terms, especially in property catastrophe, casualty, and specialty lines.
- Book value per share increased to $156.63, representing a compounded annual growth rate of 9.7% since 2021.
- Consolidated net premiums increased 14% year-over-year, with traditional business premiums up 11% on a constant currency basis, driven by strong growth in the U.S., EMEA, and Asia.
- Excess capital increased to $3.8 billion at the end of Q2, or $2.3 billion pro forma for the Equitable transaction; deployable capital rose to $3.4 billion.
- Investment income was strong, with a nonspread portfolio yield of 4.98% (up 8 basis points from Q1) and total variable investment income of $105 million, driven by realizations in limited partnerships and real estate joint ventures.
- RGA reported operating EPS of $4.72 per share for Q2 2025, with an adjusted operating return on equity (ROE) of 14.3% for the trailing 12 months, in line with intermediate-term targets.
- The effective tax rate was 25.2% for the quarter, above the expected 23%-24%, due to valuation allowances on foreign tax credits, but full-year tax rate guidance remains unchanged.
- The quarter's results were below expectations due to large claims volatility in U.S. individual life and unfavorable claims in the healthcare excess business within U.S. Group.
- FRE reached a record $323 million, up 18% year-over-year.
- First half FRE margin was a record 48%.
- AUM hit a new high of $465 billion.
- First half DE was $886 million, the highest ever for the firm.
- $51 billion of organic inflows over 12 months, reflecting investor confidence.
- Returned $320 million to shareholders in Q2, including $150 million in share repurchases.
- Raised dividend for the eighth consecutive quarter, maintaining a 40% payout ratio.
- Maintains a strong capital position with $1.4 billion excess capital, targeting $1.4 billion to $1.7 billion for the year.
- Capital deployment is seasonally higher in H2, with expectations of increased share repurchases.
- UFG has actively managed its catastrophe exposure, resulting in a catastrophe loss ratio of 5.5%, significantly below the 5-year average of 13%.
- The company has improved its risk profile through underwriting guideline enhancements, such as increased deductibles, leading to an 11% reduction in modeled all-perils gross average annual loss year-over-year.
- Management attributes the favorable catastrophe results to both better risk management and strategic resets, especially in high-exposure areas like Florida, which was part of a hard reset about a year ago.
- The company’s current year-to-date catastrophe loss ratio of 5.3% is below the full-year expectation of 5.7%, indicating ongoing progress in risk mitigation.
- Markel announced the decision to sell renewal rights and cease writing new business in its global reinsurance operation, which was acquired through Alterra over 10 years ago.
- This move is aimed at focusing on core lines of business and improving profitability.
- The exit is expected to free up capital, with the reserves and investments continuing to generate returns, and will provide flexibility for reinvestment.
- The sale of renewal rights will result in premiums being earned over the next 2-3 years, with some renewal contracts processed in Q3 2025.
- Management highlighted the potential for capital release and optionality, with a focus on reinvesting proceeds strategically.
- Mobility revenue increased 10%, with dealer revenue up 11%, driven by new products like CARFAX and automotiveMastermind.
- The company is on track with its plan to spin off Mobility, with key milestones including internal carve-out, regulatory filings, and leadership appointments.
- The CEO designate, Bill Eager, brings over 20 years of experience, and the transition is expected to be completed within 12-18 months.
- Management highlighted the resilience of the business model despite macro uncertainties, and ongoing engagement with OEMs and manufacturers.
- Blackstone reported a new industry record of $1.24 trillion in assets under management (AUM) in Q3 2025, driven by a 26% growth in fee-related earnings.
- Inflows reached $54 billion in the quarter, marking the fourth consecutive quarter exceeding $50 billion and totaling $225 billion over the last 12 months.
- The firm’s fundraising success has significantly contributed to its record AUM, with assets growing organically over four decades.
- Management highlighted the importance of their brand, scale, and breadth of capabilities in maintaining growth momentum.
- The firm’s diversified platform across private equity, credit, real estate, and infrastructure is central to its sustained success.
- Leadership expressed confidence that the firm’s growth prospects are stronger than ever, supported by secular and cyclical tailwinds.
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