A subsidiary of F&G Annuities & Life has entered into a deal to sell its Bermuda-based life and annuity reinsurance unit, F&G Life Re, to newly formed Ancient Financial.

Once the deal is finalised, F&G Life Re, a Bermuda-based reinsurer, will operate under the name Ancient Re.

F&G and Ancient will also enter a forward-flow reinsurance agreement with Ancient Re.

F&G CEO Chris Blunt said: “This is a true win-win transaction for both F&G and Ancient. We had the opportunity to monetise an operation that was no longer needed to support our reinsurance strategy, while adding a quality flow reinsurance partner.”

Ancient Financial’s operations will focus on reinsurance and asset management in the life and annuity field.

The company is structured to function independently, without oversight from any existing insurance company or asset manager.

This setup is intended to allow flexibility in crafting reinsurance and asset management solutions.

The company is backed by equity commitments from Ancient Management and a group of family offices and institutional investors.

Leadership at Ancient Financial will include Erich Schram, who was formerly head of Blackstone’s Insurance Portfolios and held other senior roles at Blackstone Credit and Guggenheim Life and Annuity Company.

Alexander Klabin, founder, chairman and CEO of Ancient, will chair Ancient Financial.

The deal is due to be completed in the first quarter of 2026.

Erich Schram added: “We are excited to launch Ancient Financial’s reinsurance and asset management platform with the acquisition of F&G Re.

“This acquisition serves as the cornerstone of our platform. We look forward to continuing our partnership with F&G and leveraging their preeminent underwriting and distribution franchise to drive mutual growth.”