Jackson Financial and global alternative asset management firm TPG establish a long-term strategic investment management partnership, which includes the formation of a new Michigan-based captive reinsurer, Hickory Brooke Reinsurance Company (Hickory Re). The partnership involves a minimum commitment of US$12 billion of assets under management (AUM) for Jackson, with incentives aligned to reach a long-term target of US$20 billion. Hickory Re is established to serve as a capital-efficient vehicle to accelerate sales growth of Jackson’s fixed and fixed index annuity products. The captive’s initial capitalisation is supported by a US$500 million minority investment from TPG into Jackson, representing an approximate 6.5 per cent ownership stake, alongside US$150 million in excess cash from Jackson. Additionally, Jackson receives US$150 million in TPG shares to further align the long-term incentives of the partnership. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Jackson Financial on the strategic partnership and the establishment of Hickory Re. The Skadden team was led by Elena Coyle, Patrick Lewis, Heather Cruz and Laura Kaufmann. The investment management agreement has an initial 10-year term. TPG Credit will initially focus on investment-grade asset-based finance and direct lending, complementing the services of Jackson’s subsidiary, PPM America. Laura Prieskorn, president and CEO of Jackson, says: “The complementary strengths of Jackson and TPG will enhance our competitiveness in the market, supporting our efforts to bring more value to consumers to meet the growing needs of Americans seeking financial security in retirement.” Jon Winkelried, CEO of TPG, adds: “As the insurance landscape continues to evolve, we see tremendous opportunity to deepen relationships and drive long-term value for policyholders and shareholders through thoughtful, relationship-driven approaches that leverage the full breadth of TPG’s capabilities.” The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2026.
