Resolution Life has completed two reinsurance transactions in Asia within a month – first in Japan, then in Hong Kong – with the latest $1 billion deal transferring material risks from a local insurer’s in-force life and annuity policies.
The Hong Kong transaction involves a portfolio of participating whole life and annuity products. Resolution Life said it will assume substantially all risks associated with the guaranteed benefits, including market risk, policyholder behavior risk, and mortality risk.
The original insurer, whose name was not disclosed, will continue to service and administer the policies under the agreement.
The company described the deal as its first transaction in Hong Kong and part of its ongoing engagement in the Asia-Pacific region. A company spokesperson confirmed that the cedant would remain unnamed.
According to Rushabh Ranavat, chief executive officer of Resolution Life in Asia, the company intends to combine its platform and regional commitment "to provide leading solutions for life insurers in Hong Kong and across Asia."
The Hong Kong announcement follows a similar transaction in Japan last month.
Resolution Life said it entered into a reinsurance arrangement with Tokio Marine & Nichido Life Insurance Co., its first since Nippon Life announced its proposed acquisition of Resolution Life. The Japan-based deal includes a portfolio held by Anshin Life, a domestic subsidiary of Tokio Marine Holdings.
Under that agreement, Resolution Life will reinsure a block of in-force and paid-up whole life insurance policies. The risks transferred from Anshin Life to Resolution Life include interest rate risk, policyholder behavior risk, and mortality risk. Anshin Life will continue to service and administer the policies.
Resolution Life manages in-force life insurance portfolios through reinsurance and acquisition arrangements. These latest transactions align with its activities in managing closed blocks of business and working with primary insurers to transfer long-duration liabilities.
The company did not provide further details about the terms or servicing models beyond what was disclosed in the statements. Both insurers involved in the Hong Kong and Japan transactions will retain servicing responsibilities while Resolution Life assumes risk exposure.
What’s your view on the increasing role of reinsurance in managing legacy life insurance blocks in Asia? Share your thoughts in the comments.
