HAMILTON, BERMUDA - Resolution Life, a global life insurance group, has entered into a strategic reinsurance agreement with Protective Life Corporation’s insurance subsidiaries, valued at $9.7 billion. The deal includes blocks of in-force structured settlement annuities and secondary guarantee universal life business.
Under the terms of the agreement, announced Monday, Protective, a subsidiary of Tokyo-based Dai-ichi Life Holdings, Inc., will cede $9.7 billion in reserves to Resolution Life but will continue to handle policy administration. This transaction is set to bolster Resolution Life’s position as a leading manager of in-force life insurance, increasing its general account life and annuity reserves to approximately $100 billion, with over four million policies in-force.
The reinsurance deal follows the recent acquisition of Resolution Life by Nippon Life, aimed at propelling the company’s growth within the global life and annuity consolidation sector, which is valued in the multi-trillions.
Warren Balakrishnan, CEO, US at Resolution Life, emphasized the company’s capacity to manage complex life and annuity products on a large scale, citing their capital strength and track record as key factors in providing a reliable partnership for Protective Life and its policyholders.
Moses Ojeisekhoba, President of Resolution Life, highlighted the significance of the transaction in supporting the primary life insurance industry by offering long-term capital that can help address the evolving needs of policyholders.
Protective’s President and CEO, Rich Bielen, expressed enthusiasm about the reinsurance agreement, noting it as a pivotal step in generating capital for further growth. He reaffirmed Protective’s commitment to increasing life insurance sales and continuing to deliver exceptional service to customers.
Financial advisory for the transaction was provided by JP Morgan for Resolution Life, while Wells Fargo advised Protective. Legal counsel was provided by Debevoise & Plimpton LLP and Willkie Farr & Gallagher LLP, respectively.
This strategic partnership is indicative of the ongoing consolidation and restructuring in the life insurance industry, with companies like Resolution Life playing a significant role in the process. The information for this article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.