Resolution Re, the Bermudian-based reinsurance platform of Resolution Life, has entered into the UK pension risk transfer market with its inaugural reinsurance agreement.

The transaction reinsures longevity and asset risks associated with UK pension liabilities of a leading UK-regulated insurer, the parent company said.

Under the terms of the agreement, Resolution Re will reinsure pension liabilities covering both pensions in payment and deferred pensions.

Resolution Life said Resolution Re has worked closely with the Bermuda Monetary Authority to develop a funded reinsurance structure that can provide capacity to the UK PRT writers in a sustainable way that considers the interests of all stakeholders including insurers and regulators.

The company said the transaction is the first of its kind for Resolution Life, which has previously signed reinsurance agreements with Lincoln National Corporation, Dai-Ichi Life, Zurich Insurance Group, Allianz Suisse and Allianz Life North America.