Resolution Life signs $9.7bn reinsurance agreement with Protective

Resolution Life has signed a $9.7 billion reinsurance agreement with Protective, a U.S. subsidiary of Dai-ichi Life Holdings, Inc.

Protective’s operating subsidiaries, Protective Life Insurance Company and West Coast Life Insurance Company, will reportedly cede in-scope blocks of structured settlement annuities and secondary guaranteed universal life policies currently in runoff to Resolution Life.

Protective explained that under the terms of the agreement, it will cede approximately $9.7 billion in reserves to Resolution Life while retaining administration of the policies to ensure a consistent customer experience.

“This transaction represents an opportunity for Protective to reduce market risk and release capital for investment in growth – both through acquisitions and in its core retail businesses, including Protection, Retirement, Asset Protection and Employee Benefits,” Protective added.

Outlining its own rationale, Resolution Life said the agreement cements its position as a leading global manager of in-force life insurance, bringing its total to approximately $100 billion in general account life and annuity reserves and over four million policies in force.

Rich Bielen, President and CEO of Protective, commented, “At Protective, we are thrilled to announce this strategic reinsurance agreement with Resolution Life. This transaction represents an important milestone, allowing us to generate capital that can be invested for continued growth.

“We remain committed to growing life insurance sales through our valued distribution partners and look forward to continuing to provide exceptional service to our customers. We are excited about the opportunities it brings for Protective, our customers and our partners.”

Warren Balakrishnan, 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, “This is an exciting time for Resolution Life. 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.

“With the recent announcement of Nippon Life’s acquisition of Resolution Life, we will continue to accelerate our growth in the highly active, multi-trillion-dollar global life and annuity consolidation sector.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.