Introduction to Chariot Re
MetLife, Inc. and General Atlantic have jointly announced the formation of Chariot Reinsurance, Ltd., a newly established Bermuda-based life and annuity reinsurance company. Chariot Re, designed to be a registered Class E entity, is slated for launch within the first half of 2025 and aims to strategically partner with MetLife moving forward.
Investment and Ownership Structure
The collaborative venture anticipates committing an initial combined equity investment exceeding $1 billion, with both MetLife and General Atlantic projected to hold around 15% equity each in Chariot Re. The remaining equity stakes are set to be distributed among various third-party investors, prominently featuring Chubb, a recognized leader in property and casualty insurance, as the primary third-party stakeholder.
Reinsurance Strategy and Responsibilities
Initially, MetLife plans to cede to Chariot Re approximately $10 billion worth of liabilities, which primarily consists of structured settlement annuity contracts and group annuity contracts associated with pension risk transfers. This transaction is contingent upon obtaining necessary regulatory approvals and finalizing the total initial equity raised for Chariot Re. Importantly, MetLife will maintain its unwavering commitment to its policyholders, assuring that all customer-related duties remain unchanged even after the establishment of Chariot Re.
Asset Management Collaboration
Going forward, asset management responsibilities will be managed exclusively by MetLife Investment Management and General Atlantic for Chariot Re. Together, they will harness their global investment management strengths to deliver comprehensive investment management solutions. This collaboration will encompass various fields including public fixed income, private credit, private real estate, and private equity investments.
Leadership and Management
Cynthia Smith is set to take the helm as the Chief Executive Officer of Chariot Re, bringing with her a wealth of experience gained over 30 years at MetLife. Previously, Smith led MetLife’s Group Benefits Regional Business and has held various senior roles across multiple functions such as strategy, finance, and technology transformation throughout her career at MetLife.
Board Composition and Strategic Direction
Additionally, Toby Srihiran Brown, Global Head of Reinsurance at MetLife, is expected to join Chariot Re’s Board of Directors, alongside Graves Tompkins, General Atlantic’s Chief Operating Officer, who will also represent the firm on the board. This significant talent onboard underscores the strategic gravity of this new venture.
Financial Backing and Legal Support
Bank of America is anticipated to facilitate financing for Chariot Re, ensuring a solid foundation for its operations. In alignment with this initiative, multiple advisory firms are involved in supporting MetLife and General Atlantic—Debevoise & Plimpton LLP and Oliver Wyman are advisors to MetLife, while Ardea Partners LP is positioned as the financial advisor for this venture. Furthermore, Paul, Weiss, Rifkind, Wharton & Garrison LLP and Eversheds Sutherland (US), LLP have been appointed as legal counsels to General Atlantic.
About MetLife
MetLife, Inc. (NYSE: MET) stands as one of the foremost financial services companies globally. Through its subsidiaries, MetLife provides a plethora of services including insurance, annuities, employee benefits, and asset management, aimed at helping both individual and institutional clients secure a promising future. With a foundation dating back to 1868, MetLife boasts operations in over 40 markets worldwide, achieving leading positions across several regions including the United States, Asia, and Europe.
About MetLife Investment Management
As the institutional investment management arm of MetLife, Inc. (NYSE: MET), MetLife Investment Management specializes in global public fixed income, private capital, and real estate investments. With over 150 years of investment experience, it serves institutional clients with tailored investment solutions aimed at achieving long-term objectives and sustainable returns.
About General Atlantic
General Atlantic is a premier global investor in the private markets with a successful track record spanning over four decades. The firm focuses on providing capital and strategic support to growth-oriented companies. As of the latest count, General Atlantic manages about $100 billion in assets across its diversified investment strategies.
Frequently Asked Questions
What is Chariot Re?
Chariot Re is a Bermuda-based life and annuity reinsurance company established by MetLife and General Atlantic, expected to launch in 2025.
Who will lead Chariot Re?
Cynthia Smith, a veteran with over 30 years at MetLife, is appointed as the CEO of Chariot Re.
What is the initial equity investment for Chariot Re?
The new venture anticipates an initial investment of over $1 billion, with both MetLife and General Atlantic each owning about 15% of the equity.
What responsibilities will MetLife retain after this transaction?
MetLife will continue to manage customer-related functions and maintains its commitment to policyholders after the establishment of Chariot Re.
Who is supporting this venture financially?
Bank of America is expected to provide financing for Chariot Re, ensuring its operational stability.
