Bermudian life reinsurer Chariot Re has completed a transaction covering approximately $1.6 billion of Japanese insurance liabilities, its first deal involving the Japanese market.

The agreement is the company’s fourth reinsurance transaction since its launch in July last year and broadens its portfolio of life and retirement business.

Effective September 30, Chariot Re entered into a retrocession agreement with MetLife Reinsurance Company of Hamilton, a Bermudian-based MetLife affiliate.

The deal covers Japanese US dollar-denominated whole life and annuity policies with approximately $1.6 billion in account value.

Retrocession involves a reinsurer transferring some of the risks it has assumed to another reinsurer. In this case, the policies were already reinsured by MetLife’s Hamilton company.

Chariot Re is an independent Class E life and annuity reinsurer co-sponsored by MetLife and investment firm General Atlantic, with backing from Chubb and other institutional investors. It draws on the asset management expertise of MetLife Investment Management and General Atlantic.

Cynthia Smith, Chariot Re’s chief executive, said the agreement extended the company’s reach into a major insurance market.

“This transaction advances our growth strategy and expands our portfolio to include liabilities from one of the world’s largest and most sophisticated life insurance markets,” she said.

“We are pleased to continue partnering with MetLife and building a diversified portfolio supported by disciplined risk management and long-term value creation. Our fourth treaty since launch demonstrates our platform’s strength, momentum, and ability to execute across products, markets, and jurisdictions.”

For MetLife, the transaction forms part of a strategy that uses outside investors’ capital to support growth in its retirement and asset management businesses.

John McCallion, MetLife’s chief financial officer and head of MetLife Investment Management, said: “Chariot Re's fourth transaction, and the first to include liabilities tied to Japan, is clear evidence of this platform scaling with momentum.

“Third-party capital remains an important lever for us as we continue to grow our retirement and asset management businesses under our New Frontier strategy.”

Chariot Re said it had expanded across several product categories and markets since launching, with a focus on underwriting, capital deployment and policyholder protection.

The company said it continued to evaluate opportunities across North America, Asia and other selected international markets.