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Nassau Re Announces New Capital for Growth and Rebranding of Core Subsidiaries

Hartford, CT, Nov. 27, 2018 – Nassau Re has secured an additional $200 million of committed equity capital from its existing sponsor, Golden Gate Capital, to support its accelerated growth plans for the company’s fixed annuity and life insurance businesses.

Nassau Re recently initiated a rebranding of its core insurance subsidiaries into a single Nassau brand. With a strengthened and unified brand in the marketplace, Nassau Re is better positioned to expand its suite of insurance products and execute on increased sales in partnership with select independent marketing organizations, as well as its direct-to-consumer online business.

“The return to growth, beginning with the rebranding of our core insurance companies is an exciting new chapter for Nassau Re and Phoenix. Over this past year, we have successfully completed the transformation and integration of our insurance companies while laying the foundation for stable, long-term growth. Looking ahead, we will continue providing our suite of competitive products while working closely with our distribution partners to develop new and innovative insurance products to meet our clients’ needs,” said Phillip J. Gass, Chief Executive Officer of Nassau Re. “The additional growth capital we have successfully raised will ensure seamless execution of our exciting growth initiatives for 2019 and beyond.”

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Alice EricsonNassau Re Announces New Capital for Growth and Rebranding of Core Subsidiaries
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Commercial Real Estate Monthly Recap – Oct. 2018

Los Angeles – October 31, 2018 – Notable monthly movements in the market include an approximate .10%-.15% widening of spreads for agency loans (~.20% YOY) as well as “A” and “BBB” rated grade corporate bonds (~.22% YOY). The movement in agency spreads is likely due to heightened levels of the supply of bonds in the marketplace, both in Freddie K’s and DUS, while buyers are continuing to be more selective. Benchmark rates continued to widen with 1-month LIBOR up .07% (+.99% YOY), 10-year treausry up .08% (+.68% YOY), 30-year treasury up .16% (+.33% YOY). Upward movement in benchmark rates has been more pronounced over the last 12 months at the shorter end of the curve.

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Alice EricsonCommercial Real Estate Monthly Recap – Oct. 2018
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VentureClash Announces Winners of 2018 $5 Million Global Venture Challenge

Nassau Re was a proud sponsor of VentureClash, $5 million global investment challenge for early-stage companies in digital health, financial technology, insurance technology and the Internet of Things. The final pitch event was held on Thursday, October 18, at the Yale School of Management in New Haven.

In all, nine companies from six different countries participated in the final pitch event. VentureClash judges awarded six companies with investments, mentoring and customer introductions to help them grow and succeed. The winning companies are required to establish a presence in Connecticut.

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Commercial Real Estate Monthly Recap – Sept. 2018

Los Angeles – September 30, 2018 – The level of commercial/multifamily mortgage debt outstanding increased by $52.3 billion in the second quarter of 2018 as all four major investor groups increased their holdings. That is a 1.6 percent increase over the first quarter of 2018, according to MBA’s latest Commercial/Multifamily Mortgage Debt Outstanding report. Total commercial/multifamily debt outstanding rose to $3.27 trillion at the end of the second quarter. Multifamily mortgage debt outstanding rose to $1.3 trillion, an increase of $20 billion from the first quarter of 2018. The balance of mortgage debt on commercial and multifamily properties grew faster during the first half of 2018 than during any other first half since 2007. The four major investor groups all increased their holdings. Agency and GSE Portfolios saw the largest increase (2.4%), followed by life insurance companies (2.2%), banks and thrifts (1.9%), and CMBS, CS and other ABS issues (1.3%). Strong property fundamentals and values, coupled with still-low mortgage rates and strong loan performance, are all supporting the market.

Of note, there was an approximate 20 basis point increase this month in the 5, 7 and 10 year Treasury, which is significant. The change from one year ago is approximately 75 basis points. The recent interest rate movement may exert downward pressure on spreads in the short term as lenders compete aggressively for business to end the year.

Conduit issuance was light in September with only 3 deals pricing for a total of $3.24b, bringing the YTD conduit total to $28.57b across 31 deals. Two of the deals priced relatively close to one another, while the third deal priced wider based on perceived weaker sponsorship. AAA LCF priced from S+78-85, with two deals at 78 and one at 85. The AA- priced in a range of S+115-130, with the A- ranging from S+145-185. The SASB space was also quiet with only 4 deals pricing, all of which were floating rate and totaled only $1.288b. Additionally, 2 CRE CLOs priced for a total of $641mm.The real star of the show this month was the secondary market, which was particularly active this month as bonds traded both in comp and behind the scenes. We saw everything from AAA tranches down to below investment grade bonds trade, with all tranches ending the month tighter. AAA LCF bonds started to trade a little heavy in the last two days of the month after heavy selling leading into quarter end. Even with the month end widening though, they still managed to tighten around 5 bps on the month. AA- bonds ended the month tighter by 5-10bps, with A- bonds closer to 10-15bps tighter. BBB- bonds outperformed again this month, with spreads 20-30 basis points tighter.

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Alice EricsonCommercial Real Estate Monthly Recap – Sept. 2018
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Commercial Real Estate Monthly Recap – Aug. 2018

Los Angeles – August 31, 2018 – The Mortgage Bankers Association (MBA) released their Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations for the second quarter of 2018, showing commercial and multifamily mortgage loan originations were four percent higher than during the same period last year and 32 percent higher than the first quarter of 2018. Borrowing and lending continues to track with last year’s level. Investor demand for multifamily properties and hotels are helping push originations higher, even as loan demand for retail properties is down. New loan demand continues to be supported by still-low long-term interest rates, growing property incomes, and rising values. A rise in originations for hotel and multifamily properties led the overall increase in commercial/multifamily lending volumes when compared to the second quarter of 2017. The second quarter saw a 22 percent year-over-year increase in the dollar volume of loans for hotel properties, a 17 percent increase for multifamily properties, a one percent increase for retail properties, a four percent decrease for office properties, a 10 percent decrease in industrial property loans, and a 16 percent decrease in health care property loans. Among investor types, the dollar volume of loans originated for the Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) increased by 18 percent year-over-year. There was a six percent year-over-year increase for life insurance company loans, a one percent decrease in commercial bank portfolio loans, and an eight percent decrease in the dollar volume of Commercial Mortgage Backed Securities (CMBS) loans. Second quarter 2018 originations for hotel properties increased 89 percent compared to the first quarter 2018. There was an 87 percent increase in originations for retail properties, a 36 percent increase for office properties, a 25 percent increase for multifamily properties, a 9 percent increase for industrial properties, and a 9 percent decrease for health care properties from the first quarter 2018.

Conduit issuance was generally light in August with 4 deals pricing for a total of $2.88b, bringing the YTD conduit total to $25.33b across 28 deals. While last month’s deals were all issued off relatively high quality shelves causing the range of prints across the stack to be relatively narrow, this month’s deal prints showed a much wider dispersion. The AAA LCF priced in a range of S+86-91, with the AA- ranging from S+125-140 and the A- ranging from S+165-200 (versus 150-160 last month). The non-conduit space was also relatively quiet with only 5 SASB deals pricing for a total of $1.7B. Of this issuance, $1.34b was floating rate (across 4 deals), while the remaining $365mm (1 deal) was fixed. One CRE CLO also priced for $285mm. In the secondary market, AAA LCF bonds tightened by 2-4bps, with the rest of the stack continuing to benefit from the lack of supply, particularly in the last 3 weeks of the month, since all four conduits priced by August 10th. Secondary mezz continues to trade through primary for most deals, with AA- bonds tighter by 3-5bps and A- bonds tighter by 5-10bps. While overall trading volume was lower in August, the BBB- space was relatively active as faster money and total return accounts looked to take profits. Even with the elevated selling, BBB- bonds outperformed again in August, with bonds tightening anywhere from 15-25bps.

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Alice EricsonCommercial Real Estate Monthly Recap – Aug. 2018
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