A Bermudian-based reinsurer has signed a new deal with a major Japanese insurer, underscoring the growing role of Asian markets in the island’s fast-expanding life reinsurance sector.

Prismic Life said its subsidiary, Prismic Life Reinsurance International, has agreed with Daiichi Life Insurance to reinsure a yen-denominated in-force block of whole life and annuity policies.

Under the arrangement, Daiichi will continue to administer the policies and remain responsible for servicing policyholders.

The transaction adds to a wave of cross-border deals in which Asian insurers are transferring life and annuity risks to Bermudian-based reinsurers as they seek to manage capital and balance sheet pressures.

According to industry data, Japan now accounts for about 11 per cent of business ceded to Bermuda long-term reinsurers, with most activity still sourced from the United States but Asian flows rising steadily.

Nandini Mongia, chief executive of Prismic, said the deal reflects the firm’s focus on supporting insurers in Japan.

“This agreement reflects Prismic’s continued commitment to supporting the Japan insurance market with tailored reinsurance solutions that help insurers efficiently manage their growth, risk and capital objectives,” she said.

She added that the transaction would help diversify the company’s earnings and risk profile.

Prismic, launched in 2023 and backed by Prudential Financial and Warburg Pincus, manages more than $17 billion in liabilities.

The deal follows a series of recent Japan-linked transactions involving Bermuda reinsurers, including agreements between Japan Post Insurance and Talcott Re and Aflac Re.

Regulators in Japan have increased scrutiny of offshore life reinsurance in recent years, particularly around asset allocation and policyholder protection, as more risk is transferred overseas.