Goldman Sachs Secures $1B for Reinsurance Venture with Talcott

Goldman Sachs (GS) has partnered with Talcott Financial Group to create West Grove Re, a Bermuda-domiciled reinsurance sidecar. The companies said they closed on a $1 billion capital raise for this new vehicle, called a reinsurance sidecar. A reinsurance sidecar is used to help insurance and reinsurance firms manage their risk exposure.

The deal will be domiciled in Bermuda, which offers favorable tax and regulatory conditions. This is not the first time Goldman Sachs has explored the reinsurance market; it previously partnered with Talcott Financial Group on a similar venture.