Bermuda’s fast-growing role in covering pension and annuities risk in Asia was highlighted by a trio of announcements this week.

Japan Post Insurance has struck deals with two Bermudian long-term reinsurers, Talcott Re and Aflac Re. And a Hong Kong-based financial services firm, backed by Alibaba founder Jack Ma, has obtained conditional approval from the Bermuda Monetary Authority to set up a new Bermudian life reinsurer.

Bermuda’s burgeoning life reinsurance sector has acquired blocks of pensions and annuities in a growing pension risk transfer market. Most of the business has been sourced from the US, but strong growth is now coming from Asia.

According to the latest statistics from the Bermuda International Long-term Insurers and Reinsurers, 82 per cent of business ceded to its member companies is sourced from the US, while Japan’s share has grown to 11 per cent.

Many of the transactions involve the transfer of assets and their related liabilities to reinsurers in Bermuda. Japan’s Financial Services Agency announced last year that it was increasing scrutiny of offshore life reinsurance, particularly over concerns of how the assets are invested, with a view to protecting policyholders’ interests.

One of the latest Japan Post deals involved the expansion of an existing block reinsurance transaction with Talcott Re.

Under the new arrangement, which came into effect on March 31, Talcott Re will reinsure an additional 100 billion yen ($625 million) block of in-force payout annuities. This builds on the initial 550 billion yen ($3.6 billion) deal between Japan Post and Talcott Re that took effect a year ago.

Imran Siddiqui, chief executive officer of Talcott Financial Group, the US-based parent company of Talcott Re, said: “As we grow Talcott’s presence in Japan, we remain committed to providing the comprehensive risk solutions our blue-chip partners depend on.

“We’re grateful to Japan Post Insurance for placing their trust in Talcott and recognising the unwavering focus our team places on fulfilling obligations to our partners and their policyholders.”

In the second deal, Aflac Re Bermuda Ltd agreed with Japan Post to reinsure a block of whole life annuities through coinsurance. No details were given about the value of the deal, or the assets tied to the annuities.

Aflac Re is the reinsurance arm of Aflac Inc, a provider of life and health insurance through its subsidiaries in Japan and the US.

Max Brodén, chief financial officer of Aflac Inc, said the deal marked a milestone for the group’s Bermudian reinsurer.

“While Aflac Re has secured multiple reinsurance transactions from Aflac Life Insurance Japan, this is the first transaction with an external party,” Mr Brodén said.

“In addition, this transaction further contributes to our strategic partnership with Japan Post Insurance as we aim to create shared value for both our policyholders and shareholders.”

Tsana Nobles, president of Aflac Re Bermuda, added: “We look forward to continuing to build our relationship with Japan Post Insurance.

“We also look forward to leveraging our expertise to provide similar support for other Japanese life insurers to reduce risk, enhance their capital management and expand their new business opportunities.”

Both of the Japan Post deals were effective March 31, 2026, and both involve the Japanese insurer continuing to service and administer the policies.

Also on March 31, Yunfeng Financial Group announced that it had obtained conditional approval from the BMA to register a new wholly owned subsidiary, YF Life Insurance Bermuda, as a Class E long‑term insurer.

The new Bermuda entity will be allowed to conduct life, annuity, accident and disability insurance business once all regulatory conditions are satisfied.

According to financial information provider Zhitong Finance, the group views this approval as a key milestone in expanding its global insurance footprint, with YF Life Bermuda intended to target international client markets and broaden its business reach.

Leveraging the Bermuda platform, “the company also plans to explore applying artificial intelligence and data technologies to its insurance operations to improve customer service and operational efficiency, funding required capital from internal resources while it completes the conditions set by the regulator before commencing business”, Zhitong reported.