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Resolution Life in record reinsurance transaction

A Bermudian-regulated global life insurance group has entered into what it says is a record-setting reinsurance transaction.

The contract involves $35 billion in fixed indexed annuities reinsured from Allianz Life Insurance Company of North America to Bermudian-regulated Resolution Life’s island-based reinsurance platform, Resolution Re, and Talcott Resolution Insurance Company, an affiliate of Sixth Street.

Resolution Life said it is one of the largest legacy or back-book life and annuity reinsurance transactions transacted and the largest for Allianz Life.

After this transaction, the company said, Resolution Life will have invested approximately $5 billion of equity and have gathered $90 billion in assets under management.

Under the transaction, $26 billion of fixed index annuity liabilities will be reinsured to Resolution Re, with $12 billion of the reinsured liabilities to be retroceded to an affiliate reinsurer of Talcott.

Talcott has separately agreed to reinsure $8 billion of fixed indexed annuity liabilities directly from Allianz Life.

The company said the transaction further diversifies Resolution Life’s risk profile and adds scale to the group’s balanced portfolio across leading insurance markets in the US, Europe and Australia.

The transaction is expected to complete by December 31.

Resolution Life said it provided strong counterparty risk protections, efficient execution and proven capabilities that are highly valued by Allianz.

This transaction follows the $4.3 billion reinsurance agreement with Allianz Suisse Life announced in September and, the company said, demonstrates Resolution Life’s commitment to provide de-risking solutions to primary life insurers.

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Published December 09, 2021 at 8:11 am (Updated December 09, 2021 at 8:11 am)

Resolution Life in record reinsurance transaction

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