Reinsurer Fortitude Re has closed a $4bn (Y598.58bn) reinsurance transaction with Taiyo Life Insurance, part of Japanese company T&D Holdings .
This deal involves the reinsurance of a “significant portion” of Taiyo Life’s whole life annuity business to Fortitude Re.
Taiyo Life will maintain its role in servicing and administering the reinsured policies.
This transaction is the second reinsurance agreement with Taiyo Life and the sixth overall in the Japan.
For this deal, Fortitude Re received legal counsel from Sidley Austin and Mori Hamada & Matsumoto.
Fortitude Re Asia head Leonard Lin said: “We are honoured that Taiyo Life continues to place their trust in us and we look forward to building on our successful partnership. This transaction further demonstrates our deep commitment to the Japan market and to helping our partners achieve their risk, capital and growth aspirations.”
Fortitude Re CEO Alon Neches stated: “The track record Fortitude Re has built in Japan underscores the power of the partnership between Fortitude Re and its shareholders. 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.”
This agreement follows Fortitude Re’s announcement of a long-term care and individual disability reinsurance agreement with a subsidiary of Unum Group in the US.
With the completion of that deal, Fortitude Re’s originated reserves for the year will surpass $8bn.
Backed by Carlyle Group and T&D Insurance Group, Fortitude Re Group oversees approximately $101bn in general and separate account insurance reserves.
The company also administers more than four million insurance policies.
