MassMutual-backed reinsurer Martello Re launches

Bermuda-based Martello Re Ltd. has launched as a class E life and annuity reinsurance company with an initial equity investment of $1.65 billion.

Massachusetts Mutual Life Insurance Co., Centerbridge Partners LP, Brown Brothers Harriman & Co. and a group of institutional investors and family offices, including Hudson Structured Capital Management Ltd., provided financial support to the reinsurer.

Saturday Insurance founder Dennis Ho will lead Martello Re as CEO, while MassMutual's Ellen Conlin will become chairwoman of its board.

The board will also include Ho, Barings' Michael Baumstein, Centerbridge's Matthew Kabaker and Eric Hoffman and Brown Brothers Harriman's Jeff Meskin and Taylor Bodman.

Martello Re will initially reinsure approximately $14 billion of general account liabilities from MassMutual and its subsidiaries, and the companies will enter a flow arrangement to reinsure new business. The transactions, which have received regulatory approval, are expected to close in February.

The reinsurer intends to offer its services to other top insurers in the life and annuity space, with an initial focus on providing reinsurance capacity to MassMutual and its subsidiaries on current product offerings.