Dai-ichi Life Holdings Inc. announced that its US subsidiary, Protective Life Corporation, has entered into a strategic reinsurance agreement with Resolution Life Group Holdings Ltd. The deal will see Protective cede approximately US$9.7 billion in policy reserves to the reinsurance firm in an effort to enhance earnings and optimize capital deployment.
The agreement, disclosed in a statement by Dai-ichi, involves the transfer of structured settlement annuities and secondary guaranteed universal life policies currently in runoff. While the assets related to the contract will remain with Protective Life, income and expenses -- including investment gains and losses -- will be shifted to Resolution Life. Protective will retain administration of the policies, ensuring continuity for policyholders.