Fortitude Re has closed a $4bn reinsurance transaction between its subsidiary, Fortitude International Reinsurance Company Ltd. and Taiyo Life Insurance Company.
Under the transaction, which is effective as of February 28, 2025, Taiyo Life has reinsured a significant portion of its whole life annuity business to Fortitude Re. Taiyo Life will continue to service and administer the reinsured policies.
This transaction marks Fortitude Re’s second reinsurance transaction with Taiyo Life and Fortitude Re’s sixth deal in Japan.
“We are honored that Taiyo Life continues to place their trust in us and we look forward to building on our successful partnership,” said Leonard Lin, Head of Asia, Fortitude Re.
“This transaction further demonstrates our deep commitment to the Japan market and to helping our partners achieve their risk, capital and growth aspirations.”
“The track record Fortitude Re has built in Japan underscores the power of the partnership between Fortitude Re and its shareholders,” said Alon Neches, CEO, Fortitude Re.
“T&D’s origins and extensive activities in Japan combined with Carlyle’s 25-year track record in the country and leading asset origination capabilities, have helped grow our business ensuring that our policyholders benefit from the compelling value proposition we have built. Together, we are delivering innovative solutions that provide long-term value for insurers in Japan and around the world.”
The transaction with Taiyo Life comes on the heels of the announcement of the signing of Fortitude Re’s long-term care and individual disability insurance reinsurance agreement with a subsidiary of Unum Group last month in the US. Upon closing of that transaction, Fortitude Re will have originated over $8bn in reserves this year.
Sidley Austin and Mori Hamada & Matsumoto served as legal counsel to Fortitude Re on the Taiyo Life transaction.