Bermudian-based Pacific Life Re has announced its third asset-intensive block reinsurance deal with Japanese life insurer Anshin Life, a subsidiary of Tokio Marine Holdings.

The deal follows transactions completed in 2024 and 2025, and covers in-force whole of life policies.

The transaction was announced as Japan’s Financial Services Agency considers proposed amendments to its insurance regulations that would tighten rules around asset-intensive reinsurance.

Also known as funded reinsurance, asset-intensive reinsurance involves a primary insurer transferring both the liabilities and the associated asset risks of long-duration products like annuities to a reinsurer.

Bermudian-based life reinsurers have seen a strong pipeline of such deals from Japan, worth billions of dollars.

Last week, Resolution Life announced that it had closed two deals with Japanese life insurers, as well as one has closed three transactions in Asia, the Bermudian-based reinsurer announced, covering policies in Hong Kong and Japan.

The JFSA’s proposals, announced in April before a consultation period that closed on May 11, would beef up scrutiny of contracts and the reinsurers taking on the risk, as well as areas including asset management, collateral, concentration risk and stress testing.

The JFSA expects to implement the changes some time this year.

In a statement, Pacific Life Re said the transaction will allow Anshin Life “to reduce its portfolio’s long-term interest-rate risk, while continuing to support and protect policyholders”.

Rupen Shah, managing director, Asia Pacific and Individual Retirement of Savings & Retirement, Pacific Life Re said: “We’re delighted to announce this third block transaction with Anshin Life, reinforcing our longstanding partnership.

“Delivering these solutions in Japan underscores our long-term commitment to the market and remains a key part of our core business strategy. Through the transfer of Anshin Life’s risk to Pacific Life Re, their organisation is able to more efficiently manage and optimise their product portfolio, helping to achieve broader business objectives.”

Pacific Life Re is the global reinsurance business of Pacific Life, a 160-year-old American-based company.

The company voiced support for Japan’s proposed regulatory changes last month.

“We believe these measures will encourage sound AIR [asset-intensive reinsurance] practices across the market and promote greater transparency, discipline, and resilience,” said Soichiro Makimoto, head of Pacific Life Re’s Japan representative office.

“Having expanded significantly to date, the Japanese AIR market is now entering a new phase in which greater emphasis will be placed on the quality of AIR and accountability in its implementation, leading to increased transactions between cedants and reinsurers with strong risk management practices and more sustainable long‑term growth.”