Apollo Global Management subsidiary Athene is to enter into a block reinsurance transaction with Japanese insurer Sony Life Insurance Co. As part of this transaction, Athene will reinsure an in-force block of US dollar denominated whole life insurance policies and will enter into an agreement with reinsurer Swiss Re to retrocede all mortality risk associated with the block.
“Japanese insurers are increasingly turning to more tailored solutions and flexible capital to enhance their financial strength and advance policyholders’ goals,” said Katie Daly, EVP and Global Head of M&A, Reinsurance and Pensions at Athene.
“Our retirement and capital expertise put us in a strong position to address needs unique to the Japan market.”
“Apollo and Athene’s growing presence in Japan is a direct result of our differentiated model’s ability to bring in capital to support Japanese policyholders,” said Yasuo Kashiwagi, Head of Japan at Apollo.
“The combination of balance sheet strength and world-class asset management capabilities fits well with deeper shifts underway in Japan and enables us to provide safe yield solutions to Japanese retirees and savers in an aligned way.”
This transaction marks Athene’s eighth reinsurance transaction across seven cedents, and second block reinsurance transaction with Japanese insurers since entering the market five years ago. This brings the total transaction volume of Athene’s reinsurance transactions with Japanese cedants to approximately $19bn.