Fortitude Re’s parent company has acquired Dayforward, an insurtech company with a digital platform that supports annuity providers.

FGH Parent, LP said the transaction would strengthen Fortitude Re’s long-term strategy “to build capabilities that support clients across a broad range of insurance channels”.

Founded in 2020, Dayforward has built an integrated platform that supports the full policy life cycle, including agent onboarding, application processing, policy issuance, commission payments and in-force servicing.

The acquisition includes Dayforward’s technology platform, distribution agreements, intellectual property, licensed insurance agency and employees. It does not include Dayforward’s insurance entities or the legacy policies and liabilities associated with them.

The transaction will be done through a newly formed entity, Fortitude Life, which will operate as a subsidiary of Fortitude Re, with Dayforward’s team continuing to lead the business.

“The Dayforward team has built a set of technology capabilities that perfectly complement our underwriting, asset-liability management and investment expertise,” said Alon Neches, chief executive officer of Fortitude Re.

“Partnering with Dayforward strengthens our ability to originate and manage business in new ways while preserving the disciplined approach that has guided Fortitude Re’s growth. We look forward to combining Dayforward’s entrepreneurial energy and digital capabilities with Fortitude Re’s capital strength and insurance expertise.”

Aaron Shapiro, CEO of Dayforward, said: “We founded Dayforward to modernise how annuities are issued, administered and delivered to consumers.

“Joining Fortitude Re gives us the capital foundation and institutional expertise to scale that vision at a pace we could not have achieved on our own.

“Fortitude Re’s approach to risk management and its long-term commitment to policyholders align closely with how we have built this business, and we look forward to building on that shared foundation together.”

Fortitude Re, a Class 4 Bermuda long-term reinsurer, is backed by investors including Carlyle and T&D Insurance Group.

Willkie Farr & Gallagher LLP served as legal adviser to Fortitude Re.