A US-based life insurance and annuity company with a subsidiary in Bermuda has been given a massive capital injection.

Ares Management Corporation, a Los Angeles-based global alternative investment manager, has raised more than $2.3 billion of equity commitments from third parties, Ares and affiliates of Ares to support the long-term growth of Aspida Holdings Ltd.

Aspida, which is based in Durham, North Carolina, is supported by the Ares Insurance Solutions business as its dedicated investment management, capital solutions and corporate development partner.

The company’s Bermudian-based subsidiary, Aspida Life Re Ltd, holds a long-term Class E licence granted by the Bermuda Monetary Authority.

In addition to the capital raise by Ares, Aspida recently closed an oversubscribed offering of $700 million in credit facilities bringing total capital raised to more than $3 billion.

After launching four years ago, Ares said, Aspida has organically grown its platform to over $19 billion in total assets, as of September 30, 2024, by leveraging its scalable, user-friendly technology platform designed to deliver high quality customer service to its individual annuity and reinsurance clients.

With the strength of the Ares platform, the AIS team has helped build Aspida a diversified portfolio of high-quality investments that is over 90 per cent investment grade and well-matched to its liabilities.

“This is a remarkable milestone for Aspida, and the Ares team is proud to provide continued support through our capital investment and the AIS team’s services,” said David Reilly and Ryan Myrick, partners and co-heads of AIS.

“Propelled by secular tailwinds, including increased life expectancy, rising healthcare costs and elevated expenses, retirement planners have turned to annuities to offer enhanced after-tax returns.

“By pairing Aspida’s spread-based business model and digital platform with AIS’s leading asset origination and investment capabilities, we believe Aspida is well-positioned to capitalise on these trends and drive continued growth and value creation for its clients and investors.”

Lou Hensley, chief executive and president of Aspida, said: “We are excited to announce this significant achievement for Aspida, which reflects the growing demand for our versatile platform offerings and the strength of our relationship with Ares.

“In just four years, we are delivering on our mission to support clients’ financial security by leveraging cutting-edge technology designed to provide superior speed, service and scalability.

“Combined with access to Ares’ leading global investment platform, Aspida has been able to capitalise on the increasing demand for retirement solutions.

“On behalf of the entire Aspida team, I want to extend my gratitude to Ares and all our investors for their continued trust and confidence in Aspida’s vision and future.”