In-force life insurance business manager Resolution is to reinsure $35bn of fixed indexed annuities written by Allianz Life Insurance Company of North America.
Resolution’s reinsurance platform, Resolution Re, will reinsure $26bn of fixed indexed annuity reserves from Allianz Life, while Resolution Re will retrocede $12bn to an affiliate of Talcott Resolution Insurance. Talcott has separately agreed to reinsure $8bn of fixed indexed annuity liabilities directly from Allianz Life.
It is Resolution’s second reinsurance agreement with Allianz Life, following its $4.3bn agreement with Allianz Suisse announced in September 2021.
The transaction, expected to complete by the end of the month, further diversifies Resolution Life’s risk profile and adds scale to the group’s balanced portfolio across major insurance markets in the US, Europe and Australia, it said.
Sir Clive Cowdery, founder and executive chairman of Resolution Life, said: “This reinsurance agreement further illustrates Resolution Life’s ability to complete large, innovative, and complex transactions alongside constructive partners. Resolution Life’s focus has always been to provide stability and security for policyholders while helping global insurance partners with their restructuring plans.”
Following completion, Resolution Life, including the Group’s Bermuda reinsurance base, will manage about $90bn of assets and provide services to over 3 million policyholders.
Resolution Life, Allianz Life, fixed indexed annuities, reinsure, North America,