Midwest Holding Inc., a technology-enabled, services-oriented life and annuity platform, announced that its subsidiary American Life & Security Corp. (ALSC) has entered into a reinsurance agreement with American Republic Insurance Company (ARIC), a subsidiary of American Enterprise Group, Inc. (AEG). AEG’s subsidiaries are rated A (excellent) by AM Best.
Under the terms of the agreement, ARIC will assume an initial 20% quota share of certain Multi-Year Guaranteed Annuity (MYGA) and Fixed-Income Annuity (FIA) policies issued by ALSC, effective January 1, 2021, up to $100 million of premium. The agreement is renewable on an annual basis, subject to potential adjustment of the quota share, up to $100 million of premium per year.
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“This is a meaningful partnership for Midwest as we look forward to a long-term collaboration with AEG. The transaction is consistent with our commitment to being a leading insurance-as-a-service platform and reinforces our strategy of pursuing high-level reinsurance relationships in support of our business objectives,” said Midwest co-Chief Executive Officer Mike Minnich.
1505 Capital, a subsidiary of Midwest, will manage the assets covered by the agreement and Midwest will report transactions under the agreement beginning in its second quarter financial statements.
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Midwest Holding Inc. is a technology-enabled, services-oriented annuity platform. Midwest designs and develops in-demand life and annuity products that are distributed through independent distribution channels, to a large and growing demographic of U.S. retirees. Midwest originates, manages and transfers these annuities through reinsurance arrangements to asset managers and other third-party investors, who are actively seeking these financially attractive products. Midwest also provides the operational and regulatory infrastructure and expertise to enable asset managers and third-party investors to form, capitalize and manage their own reinsurance capital vehicles.
