Japanese insurers are seeing Bermuda as an important reinsurance partner as the island’s long-term sector expands its reach in Asia, according to Damian Cooper, who recently attended the East Asia Insurance Conference in Tokyo.

The partner at PwC Bermuda said discussions pointed to the strong relationship between the two markets.

“One of the positive themes from my discussions is the continued recognition of the Bermuda reinsurance market as an important partner for the Japanese insurance industry,” Mr Cooper said in a press release.

“The market's ability to provide both capital diversification and deep risk expertise continues to support insurers as they pursue their strategic objectives and respond to changing market conditions.”

The comments come amid major growth in Japanese business for Bermuda’s long-term reinsurance sector.

Bermuda long-term re/insurers manage about $1.52 trillion in assets, while Japan accounts for 11 per cent of business ceded to the sector, compared with 82 per cent from the United States, according to figures supplied by Bermuda International Long-Term Insurers and Reinsurers.

The sector services about 90 million policyholders globally, including 9 per cent in Japan.

The growing relationship is evident in a string of transactions this year. Japan Post Insurance struck deals with Bermudian-based Talcott Re and Aflac Re Bermuda in March.

Talcott agreed to reinsure an additional ¥100 billion, or about $625 million, of payout annuities, building on an earlier ¥550 billion transaction. Aflac Re separately agreed to reinsure a block of Japan Post whole-life annuities.

Prismic Life Reinsurance International followed in April with an agreement to reinsure a yen-denominated block of whole-life and annuity policies from Daiichi Life Insurance.

Suzanne Williams told The Royal Gazette earlier this year that Asian expansion is becoming a major source of future growth for Bermuda, identifying Japan, Hong Kong and Singapore as opportunities. The Biltir chief executive said growth in Asia had been the “most talked-about thing” in her conversations at the Refocus conference in February.

Mr Cooper’s comments come ahead of the Bermuda International Life and Annuity Conference on Monday and Tuesday, when more than 700 delegates are expected. Bermuda’s growing role in Asian markets will be among the topics discussed

Last year's conference noted the fact that Japanese has introduced a new capital framework based on international standards. This is making Bermuda’s expertise in navigating international standards look more and more attractive to Japan as it grapples with the pressures of low interest rates and an ageing population.

Amid growth, the expansion is also attracting regulatory attention. Japan’s Financial Services Agency wants stronger scrutiny of offshore life reinsurance deals, including their asset management, collateral, concentration risks and stress testing.