Long-term legacy life insurance solutions provider Resolution Life has announced that its Bermudian reinsurance platform, Resolution Re, has entered into the UK Pension Risk Transfer (PRT) market with its first reinsurance agreement.
The transaction reinsures longevity and asset risks associated with UK pension liabilities of a leading UK-regulated insurer.
Under the terms of the agreement, Resolution Re will reinsure pension liabilities covering both pensions in payment and deferred pensions.
According to Resolution Life, its reinsurance arm has worked closely with its regulator in Bermuda to develop a funded reinsurance structure that can provide capacity to the UK PRT writers “in a sustainable way that considers the interests of all stakeholders”, including insurers and regulators.
Resolution Life said that this move extends its position as a leading global manager of in-force life insurance businesses, with over four million policies in-force, supported by its operational and digital administrative capabilities that enable better customer experiences.
The transaction is the first of its kind for Resolution Life, having previously signed reinsurance agreements with Lincoln National Corporation, Dai-Ichi Life, Zurich Insurance Group, Allianz Suisse, and Allianz Life North America.
Resolution Re was advised on the transaction by the London offices of Eversheds Sutherland (International) LLP and Hymans Robertson LLP.
