Resolution Re signs pension risk transfer reinsurance agreement

Bermuda-based Resolution Re has entered the UK pension risk transfer market with its inaugural reinsurance agreement.

The agreement, with an undisclosed UK regulated insurer, will see Resolution Re, headed by chief executive officer Steve Hales, will reinsure pension liabilities covering both pensions in payment and deferred pensions.

Resolution Re said it has worked closely with its regulator in Bermuda to develop a funded reinsurance structure that can provide capacity to the UK PRT writers in a sustainable way that considers the interests of all stakeholders including insurers and regulators.

UK regulators have raised concerns about insurers taking on pension risk transfers. In July, the Bank of England’s Charlotte Gerken, head of pensions supervision, said she saw “strong incentives for insurers to stretch their supply capabilities in the short term, to capture as much of the new business while they can, before leaner years arrive”.

Resolution Re parent Resolution Life said the deal enhanced its  position as a leading global manager of in-force life insurance businesses, with over four million policies in-force, supported by it operational and digital administrative capabilities.

The transaction is the first of its kind for Resolution Life, which has previously signed reinsurance agreements with Lincoln National Corporation, Dai-Ichi Life, Zurich Insurance Group, Allianz Suisse and Allianz Life North America.

Link: https://www.bermudareinsurancemagazine.com/news/resolution-life-in-deal-with-farmers-group-8482

Earlier in 2023, Resolution Life announced it had completed the acquisition of AIA Australia’s Superannuation & Investments business and that it had closed its strategic partnership with Blackstone.

Resolution Re were advised on the transaction by the London offices of Eversheds Sutherland (International) LLP and Hymans Robertson LLP.