Aspida, an annuity issuer controlled by Ares Management Corp., has raised $3 billion that it can use to write more fixed annuities.
Ares, a New York-based asset manager with $464 billion in assets under management, said it has raised $2.3 billion in capital for Aspida by arranging to sell stock to outside investors.
Aspida has also raised $700 million in capital through credit facilities.
The Ares relationship is helping to provide the resources Aspida needs to meet clients' growing demand for retirement solutions, said Lou Hensley, Aspida's CEO.
What it means: Aspida is known as a highly competitive issuer of nonvariable indexed annuities and multi-year guaranteed annuity contracts — annuities that provide guaranteed interest rates for periods that usually range from 1 to 7 years.
The capital flowing into Aspida could sweeten interest rates for all buyers of individual fixed annuities, by helping Aspida continue to be an aggressive player in the market.
Aspida: Aspida is the trade name for Aspida Life Insurance Co., a Durham, North Carolina-based annuity issuer; Aspida Re (Bermuda) Ltd., a reinsurer based in Hamilton, Bermuda; and affiliates of Aspida Life and Aspida Re.
Ares Management controls Aspida through its position as the general partner in a limited partnership, according to a regulatory filing for a new Aspida indexed annuity.
Aspida acquired Global Bankers Insurance Group in 2021 from Pavonia Life Insurance Co. of Michigan and then began expanding annuity sales.
It reported $1.9 billion in individual nonvariable indexed annuity sales for the first three quarters of 2024, and it ranked 15th for sales of that kind of product, according to LIMRA issuer survey data.
The company says it has succeeded by using modern, user-friendly technology to support its annuities and choosing asset managers in a way that maximizes its annuityholders' returns.
Aspida ended the third quarter with $19 billion in assets.
Ares: Ares' involvement in Aspida could ultimately change how people associated with Aspida think about football: Ares agreed in December to acquire a 10% stake in the Miami Dolphins football team from the current owner, Stephen Ross.
Earlier in 2024, Ares helped Meaningful Partners acquire Fitness Ventures, the second-largest owner and operator of Crunch Fitness clubs.
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