F&G Annuities Forms $1B Reinsurance Partnership with Blackstone Funds

F&G Annuities & Life, Inc. has established a strategic partnership with a new reinsurance vehicle backed by Blackstone-managed funds, involving around $1 billion in anticipated capital commitments. Effective August 1, 2025, this reinsurer will provide long-term, on-demand growth capital through a forward flow reinsurance agreement covering a quota share of certain fixed indexed annuity products.

This arrangement allows F&G to better manage liabilities while reinsuring a portion of its fixed indexed annuity sales, supporting its capital-light business model which is central to its corporate strategy. The partnership underscores the ongoing relationship between F&G and Blackstone, focusing on innovative solutions that enhance value and operational flexibility. CEO Chris Blunt emphasized that this deal enhances F&G’s ability to fund growth with private, long-term capital and to expand its distribution network, positioning the company towards higher margin, fee-based revenue streams and improved return on equity.

The transaction, advised by Jefferies and legally supported by Sidley Austin LLP, may have significant implications for F&G’s risk management and capital efficiency in a competitive annuity market. This development reflects broader trends in insurance industry financing, where partnerships with private capital providers offer new options for managing product liabilities and supporting growth without heavy reliance on traditional capital sources. F&G’s forward-looking statements highlight the impact of economic conditions, regulatory changes, and market variables on operational performance.