SILAC Insurance Company, a US annuity provider, and Hildene Capital Management, a credit-focused asset manager with approximately $12 billion of assets under management, have announced that they have formed a long-term strategic alliance.

As part of the alliance, Hildene has acquired a strategic minority ownership interest in SILAC. In addition, SILAC has entered into a $2.5 billion quota share agreement with Hildene affiliate Ludlow Se, which will provide reinsurance for SILAC’s annuity products. Hildene will also provide investment management oversight to $2 billion of SILAC’s general account assets as part of the deal.

“I couldn’t be more pleased to form this strategic alliance with Hildene, a well-recognized credit investor with a disciplined approach to portfolio management,” said Stephen C. Hilbert, chairman and CEO of SILAC. “This transaction – along with our increased bank facility – accomplishes SILAC’s goal of managing our risk-based capital company action level at over 300%. I firmly believe that Hildene’s investment experience and commitment to SILAC’s future reinsurance needs augments our company’s strengths and positions SILAC to remain one of the leaders in the asset accumulation sector.”

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“SILAC has built a market-leading annuity distribution platform, and we are excited to partner with Steve and his team at an important point in the company’s evolution,” said Brett Jefferson, founder and co-chief investment officer at Hildene. “Our alliance with SILAC underscores the confidence we have in the company’s ongoing success and Hildene’s ability to source attractive investment opportunities for longer-term capital. We look forward to a symbiotic relationship with SILAC for years to come as we continue to scale the Ludlow Re platform.”

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