For KKR, with committed capital managed in life and annuity reinsurance sidecar structures under Global Atlantic rising rapidly for the investment giant in recent years, these third-party capitalised reinsurance strategies are an increasingly important component of the firm’s results.KKR has long explained the benefits to investors of insurance and reinsurance as an asset class, but it’s increasingly clear how important it has become to the entire firm as a source of long-dated capital and attractive earnings as well.Through its subsidiary Global Atlantic, KKR operates a number of life and annuity reinsurance sidecar structures, under the Ivy Re brand and others.When KKR acquired Global Atlantic in 2020, , while also demonstrating their appreciation for bringing third-party capital into re/insurance and that the fees they can generate could be attractive.

Committed third-party capital across the range of Global Atlantic reinsurance sidecars surpassed the $6 billion mark earlier this year, but now we can see more details on how this strategy has become additive to KKR’s overall business revenue generation.The insurance operating segment is a significant driver of income for KKR and key to this is the assets under management of Global Atlantic, of which the Ivy and sidecar structures are driving a significant and growing proportion.In fact, while Global Atlantic now has a reported $212 billion of assets under management, the sidecar platform under Ivy Re and related structures now accounts for a significant $51 billion of that.

Which is a really meaningful proportion of the overall asset base of KKR’s main insurance and reinsurance entity, demonstrating the important role third-party capitalised sidecars are starting to play.Further capital raising for the Ivy strategy drives the ability for Global Atlantic to write more in life and annuity risks, effectively leveraging its own balance-sheet by leaning on third-party investors appetites to support the strategy.It’s a smart way to do more with less, as this third-party capital fuels greater ability to underwrite upfront, which in turn fuels faster build-up of assets under management as well.

Importantly though, this is also a revenue driver for KKR and Global Atlantic’s fee income generated by the sidecars is growing as well.Net fees earned from Ivy Re and related reinsurance sidecars has now reached almost $123 million in the first nine months of 2025 and this has increased from just over $101 million for the first three-quarter of the prior year.The run-rate of Ivy and sidecar fee income generated appears to be rising around $10 million per-quarter year-on-year in recent reported periods, with this expected to keep growing given recent wins to bring in more capital to support the reinsurance sidecar activities.

These fees are paid by third parties to KKR for investment management of the assets in the Ivy and other reinsurance vehicles.As we reported back in July, .The company sees this as a way to gain access to strategic returns from business activity of KKR’s U.S.

life, retirement and annuities insurance and reinsurance company.Rob Lewin, CFO of KKR said yesterday that the company is “raising more third-party capital across our Ivy Sidecar strategy and strategic partnerships to grow Global Atlantic in a capital-efficient manner.” He also explained that, “These vehicles allow us to marry third-party capital alongside the Global Atlantic (GA) balance sheet, and they often pay fee and carry similar to a drawdown credit or PE fund.These assets would not exist without GA, but all of the management fees show up in our asset management segment.” He further explained that KKR estimates that $6 billion of dry powder can equate to around $60 billion plus of fee paying AUM for KKR, which can deliver meaningful additional management fees for the platform.

With economics like that, it is no surprise KKR and other investment giants are following the third-party capitalised sidecar route.It’s become a really important part of their overall business models and a driver for continued insurance and asset management growth and earnings..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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