A company that hopes to build a big annuity business has a new reinsurance deal.
Midwest Holding Inc. says its American Life & Security Corp. subsidiary will be passing some of the annuity risk it assumes on to American Republic Insurance Co.
American Republic is a subsidiary of American Enterprise Group Inc.
American Republic has agreed to assume a 20% share of the risk associated with American Life's multi-year guaranteed annuities and fixed income annuities, up to a limit of $100 million of premium, according to Midwest.
American Life can renew the deal every year, but the amount of risk passed on, or "quota share," could change.
Mike Minnich, Midwest's co-CEO, said in a comment in the deal announcement that = the Lincoln, Nebraska-based company hopes to form a long-term relationship with American Enterprise Group.
American Enterprise is based in Des Moines, Iowa.
A Midwest subsidiary, 1505 Capital, will manage the annuity assets covered by the agreement, Midwest says.
Midwest
Midwest is a public company, with stock that trades on Nasdaq with the stock symbol MDWT.
Company managers are telling investors that, in some ways, Midwest may be similar to, or even superior to, Apollo Global Management Inc., the asset manager behind Athene Holding Ltd., according to a presentation slidedeck.
Midwest managers say their company combines the ability to write annuities, asset management services, homegrown technology, and capital efficiency in one package.
