A Bermuda-based subsidiary of Resolution Life has completed a £2bn ($2.5bn) reinsurance treaty with a UK life firm covering a tranche of individual in-payment annuity liabilities.
Resolution Life said its Bermudian reinsurance platform Resolution Re completed the transaction with an unnamed major UK-regulated insurer at the end of 2023.
Resolution will reinsure the market and longevity risks of about 90,000 policyholders following the deal.
Law firm CMS advised Resolution.
This is Resolution’s second funded reinsurance transaction in the UK since the firm entered the market last year with a pensions risk transfer (PRT) deal.
In October 2023, Resolution Life announced it had inked a PRT agreement, which covered both the deferreds and pensions in payment, with an unnamed UK scheme.
Resolution Re was advised on the PRT deal by Eversheds Sutherland and Hymans Robertson.
While it was the first UK transaction of its type, Resolution has signed similar reinsurance treaties in other markets.
These deals include those with Lincoln National Corporation, Dai-Ichi Life, Zurich Insurance Group, Allianz Suisse, and Allianz Life North America.
Currently the firm is managing four million policies globally.