Martello Re in talks to raise new equity

Martello Re, a Bermuda-based life and annuity reinsurance company, is in discussions to raise at least $800 million in new equity, according to sources familiar with the matter.

As per Bloomberg, the company has commitments from both new and existing investors, said the sources, who requested anonymity due to the confidential nature of the talks. The transaction has not been finalized and the capital raise may be increased, one source noted.

Centerbridge Partners, Massachusetts Mutual Life Insurance Co and Barings were part of a consortium that announced the launch of Martello Re with initial equity of $1.65 billion in January 2022. Representatives for Centerbridge, Martello Re, MassMutual, and Barings did not immediately respond to Bloomberg requests for comment.

Martello Re, led by chief executive officer Dennis Ho (pictured above), has deployed more than $2 billion in capital and manages over $20 billion in assets, according to its website.

In a January discussion with Barings’ head of portfolio solutions and analytics, Colin Gordon, Ho said: “We started at $14 billion of AUM, we’re at $19 billion, we started with five people, we’re at 54 people. If you look at our business plan and our growth over the next three or four years, we’ll probably double our AUM.”

Martello Re was launched as a life and annuity reinsurer backed by $1.65 billion in capital and over $15 billion in managed assets, aiming to help insurers grow their businesses profitably and consistently while ensuring they can deliver on their promises to policyholders.

The company said that it emphasizes exceptional financial strength, customized solutions, and unique investment capabilities, providing life insurers with a fresh approach to reinsurance and a reliable long-term partner.

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