Apollo announced the close of an agreement for Apollo affiliated insurance companies, third-party insurance managed accounts, and other institutional clients (“Apollo”) to invest $500 million into surplus notes issued by Chesterfield Reinsurance Company, a wholly owned indirect subsidiary of Reinsurance Group of America, Incorporated (“RGA”).
The bespoke, high-grade investment solution was Apollo’s second transaction with RGA and leveraged cross-platform expertise, including in insurance, insurance-linked securities, and multi-asset credit.
Apollo Partner Jamshid Ehsani said, “Apollo is pleased to serve as a long-term strategic capital partner to some of the world’s leading reinsurance companies, a role we believe we are uniquely positioned to fill. Our ability to structure creative, scaled solutions at a wide range of capital costs differentiates us from other platforms and provides attractive investment opportunities for our affiliated and third-party insurance clients and other investors seeking high quality credit.”
Latham & Watkins served as legal counsel to Apollo, while Sidley Austin acted as legal counsel to RGA. Apollo Capital Solutions provided structuring and syndication services in connection with the transaction.