Fortitude Re has announced a $500 million issuance of funding agreement-backed notes, marking the reinsurer’s entry into the capital market with a new source of long-term financing.

The notes, due October 6, 2028, were priced at 4.625 per cent and will be issued through Fortitude Global Funding, a Delaware statutory trust unaffiliated with Fortitude Re. They are backed by a funding agreement from Fortitude Life Insurance and Annuity Co, a Fortitude Re subsidiary.

Alan Stewart, group treasurer of Fortitude Re, said the move was part of the company’s broader growth strategy.

“By diversifying our sources of capital, we reinforce the resilience of our balance sheet, unlock new avenues for growth and continue delivering on our promise to provide long-term security and value to our stakeholders,” he said.

The transaction is scheduled to settle on October 6, 2025. The notes are expected to carry ratings of BBB+ from Fitch Ratings and A3 from Moody’s Investors Service, in line with Fliac’s financial strength ratings.

Fortitude Re, which manages $106 billion in assets as of December 31, 2024, is backed by investors including Carlyle and T & D Insurance Group.