Blackstone-Led Group Buys F&G Reinsurer
F&G Annuities & Life has sold its life reinsurance subsidiary to a new entity created by a Blackstone-led investor group. The transaction underscores sponsor-led M&A activity in the insurance and reinsurance sectors within the Financial Institutions Group (FIG).
- The acquiring entity is a newly-formed financial services company called Ancient Financial, which will rename the purchased subsidiary to Ancient Re Ltd. The new firm's CEO is Erich Schram, who previously served as a Senior Managing Director with Blackstone Credit and was the Head of Blackstone's Insurance Portfolios. - As part of the transaction, F&G and the new entity will enter into a forward-flow reinsurance agreement, establishing an ongoing partnership. According to F&G's CEO Chris Blunt, this allows the company to monetize an operation that was no longer essential to its strategy while adding a new reinsurance partner. - This deal builds on an existing relationship between F&G and Blackstone. In August 2025, the two announced a strategic partnership for a reinsurance vehicle named Fort Greene Reinsurance, which was backed by approximately $1 billion in capital commitments from Blackstone-managed funds to support F&G's growth. - The transaction is part of a broader industry trend where private equity firms and asset managers are increasingly involved in the insurance sector. These sponsor-backed platforms leverage investment expertise to manage the large pools of assets that insurers hold, often seeking enhanced returns. - Ancient Financial is launching as a specialized platform for life and annuity reinsurance and asset management, backed by equity from Ancient Management LP and a consortium of institutional investors and single-family offices. It is structured to operate independently, enabling a flexible, open-architecture approach to both assets and liabilities. - Financial advisors on the deal included Barclays for Ancient Financial and Jefferies for F&G in its earlier reinsurance partnership with Blackstone. Legal counsel included Sidley Austin LLP for Ancient Financial and Skadden, Arps, Slate, Meagher & Flom LLP for F&G.
