Resolution Life secures reinsurance agreement

Resolution Life has entered into a reinsurance agreement with the US subsidiary of Tokyo’s Dai-ichi Life Holdings, Protective.

The $9.7 billion deal covers blocks of in-force structured settlement annuities and secondary guarantee universal life business. As part of the agreement, Protective will cede $9.7 billion in reserves while retaining the administration of the policies.

The Bermuda-based life insurance group said the deal demonstrates its prudent risk management, substantial capital strength and proven execution capabilities in the US life and annuity market.

The Bermuda-based re/insurer, which is in the process of being bought by Nippon Life in a deal valuing the business at $11 billion, said the deal would extend its position as a leading global manager of in-force life insurance to around $100 billion of general account life and annuity reserves with over four million active policies.

Warren Balakrishnan (pictured), US CEO of Resolution Life, said: “This strategic transaction with Protective showcases our ability to manage complex life and annuity products at scale. Our substantial capital strength and proven execution record provide a strong, long-term partner for Protective Life and its policyholders. This transaction is a great example of our reinsurance offering to the US life and annuity market.”

Moses Ojeisekhoba, president of Resolution Life, added: “With this transaction we continue to support the primary life insurance industry by providing long term capital for growth so they can respond to the changing needs of policyholders.”

Rich Bielen, president and CEO of Protective, said: “This transaction represents an important milestone, allowing us to generate capital that can be invested for continued growth.”

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