RGA has inked a JPY700bn ($4.6bn) longevity focussed asset-intensive reinsurance deal with Japan Post Insurance Company.
The deal will see an RGA affiliate provide coinsurance for an in-force block of Japan Post’s individual life annuities.
RGA said in a release announcing the deal that it was “a first-of-its-kind coinsurance transaction in Japan.”.
While asset-backed reinsurance deals in Europe and North America have been at record levels in recent years off the back of high levels of pension risk transfer activity, this trend has not been apparent in the Asia Pacific market.
This is changing. In December last year, the International Association of Insurance Supervisors reported that global reinsurers had increased their capital allocation for Asia life business, despite reduced allocations for other regions.
Since then, private equity-backed insurer Global Atlantic has signed its second deal with Manulife Japan, while Bermuda-based life consolidator Resolution signed a back book deal with Dai Ichi Life at the start of February.
Resolution has also been active in the global market, signing a $2.5bn deal for reinsurance on a UK insurer in-force annuity book in February.