Resolution Life boosts capital position with $750m Tier 2 listed debt issuance

Global life insurance group Resolution Life has completed a $750 million Tier 2 listed debt issuance, attracting strong investor demand with a peak order book surpassing $3.25 billion.

According to the firm, which specialises in reinsurance and the acquisition and management of life insurance portfolios, the development marks a significant milestone in its strategic growth, enhancing financial flexibility, strengthening its capital position, and diversifying its sources of long-term funding.

Explained, RLGH Finance Bermuda Ltd has issued $750 million of 6.75% Tier 2 notes due 2035, guaranteed by Resolution Life Group Holdings Ltd.

The notes reportedly qualify as Tier 2 regulatory capital and have been rated Baa3 by Moody’s and BB+ by Fitch.

As per Resolution Life, an application has been submitted for the notes to be admitted to trading on the International Securities Market of the London Stock Exchange. This issuance follows the firm’s inaugural subordinated debt offering in 2024.

Resolution Life said it intends to use the net proceeds from the offering to repay existing debt and for general corporate purposes, which may include funding of acquisitions, entry into reinsurance arrangements, the repayment of other indebtedness, working capital and other business opportunities.

Jonathan Moss, Chief Financial Officer of Resolution Life, commented, “We are delighted with the success of another Tier 2 debt issuance and appreciate the support of the over 200 investors who participated.

“The positive reception reflects the strength of our business model to capitalise on the opportunities in the attractive global life and annuity consolidation market.

“Following the announcement of our acquisition by Nippon Life, we are excited by our growth prospects and robust balance sheet and remain well-positioned to protect the financial futures of our policyholders. Going forward, we intend to be a periodic issuer in the international debt markets.”

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

More recently, the firm completed a block reinsurance transaction with Anshin Life in Japan, as well as a $1 billion block reinsurance deal in Hong Kong.

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