A US-based holding company has announced the formation of Kindley Re Ltd, an independent, Bermudian-based Class E-licensed life and annuity reinsurer.

Chicago-headquartered Kuvare Holdings is a technology-enabled financial services platform focused on delivering life and annuity solutions to the underserved US middle market, and reinsurance solutions to institutional partners worldwide.

It said Kindley Re will co-invest at least $400 million with Kuvare in qualifying life insurance and annuity transactions.

Kindley Re was formed in partnership with Davidson Kempner Capital Management LP and Kuvare and its affiliates.

Kuvare chairman and CEO Dhiren Jhaveri said: “Kindley Re now provides significant additional capabilities for our enterprise as we continue to capitalise on attractive opportunities in the marketplace.”

Kindley Re has entered into reinsurance arrangements with Kuvare to participate in qualifying transactions, including both flow reinsurance transactions and block reinsurance transactions, generated by Kuvare’s insurance operating companies.

Kuvare, as sponsor of Kindley Re, will provide operational support to Kindley Re through its Bermudian-based service company.

Additionally, Kuvare’s New York-based boutique asset management firm, Kuvare Insurance Services, which specialises in building tailored investment solutions for insurance companies, will serve as investment manager to Kindley Re, with Davidson Kempner also providing asset management support for Kindley Re for selected investment grade focused asset classes.

Michael Stefan, head of corporate development and strategy at Kuvare, said: “Kindley Re now provides Kuvare with access to $400 million of additional capital with flexibility to increase over time.

“This co-investment vehicle provides a unique opportunity for investors seeking to deploy capital in this market segment, while supported by a range of capabilities across Kuvare and KIS.”

The company said certain entities and investment funds managed or advised by Davidson Kempner have provided the initial equity capital commitment.

Founded in 2015 by Mr Jhaveri and a consortium of long-term capital partners, Kuvare said it is committed to a sustainable growth strategy as a technology-enabled financial services platform that provides insurance, reinsurance, and asset management solutions.

The family of Kuvare companies includes Kuvare Life Re Ltd (Bermuda), Lincoln Benefit Life Company, Guaranty Income Life Insurance Company, United Life Insurance Company, and Kuvare Insurance Services.

Davidson Kempner Capital Management LP is a global investment management firm with more than 39 years of experience and a focus on fundamental investing with a multi-strategy approach.

It has more than $36 billion in assets under management and over 500 employees across seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai.