TOKYO (Bloomberg) — Millea Holdings Inc., Japan’s biggest insurer, will form a venture with JPMorgan Chase & Co. to provide reinsurance coverage for payments of death benefits and annuities in connection with variable annuity insurance policies.

Tokio Marine Bluebell Re Limited, which will have initial start-up capital of about 10 billion yen ($85 million), will provide coverage for insurance offered by Millea subsidiary Tokio Marine & Nichido Financial Life Co.

The new company, 90.1 percent held by Millea with JPMorgan owning the remainder, will help Tokio Marine & Nichido to control risks associated with guaranteed payment obligations. It will employ derivatives-based strategies using New York-based JPMorgan’s financial expertise and technology, Millea said.

The new subsidiary plans to offer reinsurance to companies outside of the Millea group in the future.