Blackstone Kicks In $1 Billion to Create F&G Reinsurance Pool

Blackstone Inc. is creating a $1 billion reinsurance vehicle that will assume some of the risk on the books of F&G Annuities & Life Inc.

The deal, backed by Blackstone funds, will allow the insurer to share the risk tied to future fixed-indexed annuities it will sell to customers, Des Moines, Iowa-based F&G said in a statement Wednesday. Reinsurance deals typically allow insurers to reduce their capital requirements.

“The partnership will also move F&G toward a more fee-based, higher margin and less capital intensive business and is expected to be quite positive in our efforts to expand our return ...