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

The Blackstone headquarters in New York.

Photographer: Michael Nagle/Bloomberg

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 statementBloomberg Terminal Wednesday. Reinsurance deals typically allow insurers to reduce their capital requirements.