Resolution Life has entered into a reinsurance transaction with Protective Life Corporation’s insurance subsidiaries. Protective is a US subsidiary of Tokyo-based Dai-ichi Life Holdings, Inc.
The transaction scope includes blocks of in-force structured settlement annuities and secondary guarantee universal life business. Under the agreement, Protective will cede $9.7bn in reserves and retain administration of the policies.
The transaction will extend Resolution Life’s management of in-force life insurance to around $100bn of general account life and annuity reserves and over four million policies in-force.
“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,” said Warren Balakrishnan, CEO, US at Resolution Life.
“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,” added Moses Ojeisekhoba, President of Resolution Life.
“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,” said Rich Bielen, President and CEO of Protective.
JP Morgan acted as financial advisor and Debevoise & Plimpton served as legal counsel to Resolution Life. Wells Fargo served as financial advisor and Willkie Farr & Gallagher served as legal counsel to Protective.