Fortitude Re has signed and closed a US$4 billion reinsurance transaction through its subsidiary Fortitude International Reinsurance Company Ltd. (FIRL) with Taiyo Life Insurance Company, a wholly owned subsidiary of T&D Holdings, Inc.
The deal, effective Feb. 28, involves the reinsurance of a significant portion of Taiyo Life’s whole life annuity portfolio to Fortitude Re. Taiyo Life will retain responsibility for servicing and administering the reinsured policies.
This is Fortitude Re’s second reinsurance agreement with Taiyo Life and marks the firm’s sixth transaction in the Japanese market. Legal counsel for Fortitude Re on the Taiyo Life transaction was provided by Sidley Austin LLP and Mori Hamada & Matsumoto.
Fortitude Re's inaugural reinsurance transaction in Asia occurred on March 31, 2022, through the agreement with Taiyo Life. The transaction was worth US$4 billion as well.
Leonard Lin, head of Asia at Fortitude Re, said this latest agreement supports Fortitude Re’s strategy to assist partners in meeting their capital, risk, and growth goals.
Fortitude Re CEO Alon Neches (pictured above) also highlighted the company’s long-term focus in Japan, noting that this agreement has contributed to Fortitude Re’s presence in the region.
The agreement also follows Fortitude Re’s recently announced reinsurance deal with a subsidiary of Unum Group involving long-term care and individual disability blocks in the US Once that deal is completed, Fortitude Re will have originated more than US$8 billion in reserves in 2025.
The reinsurer also announced in December that Moody’s Investors Service assigned A3 Insurance Financial Strength Ratings to its three main operating entities: Fortitude Reinsurance Co. Ltd., Fortitude International Reinsurance Co. Ltd., and Fortitude Life Insurance and Annuity Co.
The global rating agency also gave a Baa2 long-term issuer rating to FGH Parent, LP, the group’s lead holding company. The outlook for all ratings is stable.
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