Athene completes first block reinsurance transaction in Japan

Bermuda-based Athene Holding has executed its first block reinsurance transaction in Japan. 

Athene said it had executed the transaction with FWD Life Insurance, although its size was not disclosed. 

Athene said it has also entered into an agreement to retrocede the mortality risk associated with the block to Swiss Re, a leading mortality reinsurer.

“We are pleased with this important extension of Athene’s franchise overseas, which demonstrates the capabilities we have developed to support the strategic objectives of insurance companies in the Japanese market,” said Grant Kvalheim, president of Athene. “We look forward to continued growth in this market by delivering thoughtful, customised solutions to clients seeking additional flexibility.”

“This transaction builds on the power of Apollo and Athene’s combined offerings to insurers in Japan, helping them to provide their policyholders and clients with long term retirement income,” said Matthew Michelini, Apollo Partner and head of Asia Pacific.

Michael van Vuuren, FWD’s group chief actuary, said: “We are pleased to partner with Athene on this transaction, which furthers our risk management objectives and delivers significant capital benefits to FWD.”

This is Athene’s inaugural block reinsurance transaction in the region. Since 2020, Athene has been active in the local new business reinsurance market, with four flow reinsurance agreements executed to date in Japan.