Fortitude Re has completed its second funding agreement backed notes (FABN) offering in eight months, with subsidiary Fortitude Life Insurance & Annuity Company (FLIAC) pricing a $500 million private placement that settles June 12, 2026.
The notes are issued through Fortitude Global Funding, an unaffiliated Delaware statutory trust. They carry a 5.50% coupon, mature June 12, 2031, and are rated A- by Fitch Ratings and A3 by Moody’s. Both ratings are consistent with FLIAC’s financial strength ratings.
The FABN market is a segment of asset-backed securities where notes are secured by funding agreements issued by life insurance companies. It gives insurers a way to raise cost-effective capital from institutional markets beyond traditional buyers.
Fortitude Re’s first FABN offering settled Oct. 6, 2025, also priced at $500 million. The inaugural deal carried a 4.625% coupon and a shorter three-year maturity.
The Fitch rating on the notes has since moved from BBB+ to A-, reflecting the agency’s positive view of the company’s growth in block and flow reinsurance markets. The longer maturity and higher coupon on the second offering point to a deliberate shift toward longer-duration institutional funding.
Alan Stewart, treasurer at Fortitude Re, said the second offering shows continued confidence from fixed income investors.
“Building on the success of our inaugural transaction, this offering further diversifies our funding sources, enhances financial flexibility, and supports our ability to deliver sustainable value for policyholders, clients, and stakeholders,” he said.
The pace of reserve growth at Fortitude Re explains why funding flexibility has become a priority. The company completed a $3.4 billion long-term care reinsurance transaction with Unum Group in July 2025. It assumed 19% of Unum’s long-term care block and 20% of its individual disability insurance premium.
By the time that deal closed, Fortitude Re had originated more than $8 billion in new reserves during 2025 alone. Absorbing blocks at that scale requires reliable and diversified access to institutional capital.
The FABN program is one of several capital channels Fortitude Re has opened in a short window. In October 2025, the company and Carlyle launched FCA Re, a Bermuda-domiciled reinsurance sidecar with more than $700 million in deployable capital. The vehicle targets the Asian life and annuity market and drew equity from T&D Insurance Group, AllianceBernstein, Shinhan Life, and the National Pension Service of Korea.
The sidecar and the FABN program together show a company building parallel capital tracks rather than depending on a single funding source.
Proceeds from the trust will be used to purchase a funding agreement from FLIAC.
