Resolution Life US Holdings Inc. (Resolution Life), a subsidiary of Resolution Life Group Holdings Limited, has announced a strategic reinsurance agreement with Farmers New World Life Insurance Company (FNWL), the life insurance subsidiary of Farmers Group, Inc.
The strategic transaction aims to bolster Resolution Life’s position as a global leader in managing in-force life insurance businesses.
Under the terms of the agreement, FNWL will transfer its existing individual life insurance business to Resolution Life’s insurance subsidiary, Security Life of Denver Insurance Company (SLD).
Resolution Life will assume responsibility for administering the reinsured policies, with certain operational functions moving to their platform.
Furthermore, SLD will enter into a flow reinsurance treaty to reinsure future individual life business, effective upon the completion of the transaction.
Resolution Life has entered into a partnership with Swiss Re, which will retrocede all of the reinsured term life insurance liabilities.
This collaboration strengthens Resolution Life’s capabilities and ensures a seamless transition for policyholders.
Conor Murphy, the Chief Executive Officer of Resolution Life US, expressed enthusiasm for the transaction, highlighting its significance in expanding their in-force life and annuity management globally. He emphasized the company’s operational and administrative expertise, emphasizing their commitment to maintaining a high level of customer service for policyholders.
Warren Balakrishnan, Chief Strategy and Development Officer at Resolution Life US, added: “Resolution Life has designed a bespoke solution to meet the objectives of all stakeholders: delivering value, with a compelling life insurance proposition for Farmers New World Life’s customer base and distribution. We look forward to working closely with Farmers New World Life.”
The transaction, subject to closing conditions and regulatory approval requirements, is anticipated to be finalized in 2023. Resolution Life’s choice of financial advisor was Morgan Stanley, while Sidley Austin LLP served as legal counsel throughout the transaction.
