Dai-ichi Life to Transfer $9.7 Billion in Insurance Blocks
Tokyo (March 7): Dai-ichi Life Holdings Inc. announced that its US subsidiary, Protective Life Corp, has agreed to transfer insurance blocks totaling approximately US$9.7 billion (RM43.0 billion) in policy reserves to Resolution Life Group Holdings Ltd, a reinsurance firm. The move aims to improve the company’s financial performance.
Protective Life Corp, based in Birmingham, Alabama, made the decision to cede the blocks to Resolution Life. Dai-ichi Life expects this transaction to improve its adjusted profit by around US$30 million to US$40 million over the medium to long term, according to a statement released by the Tokyo-based insurer.
Reinsurance companies, particularly those affiliated with investment firms like KKR & Co in the US, are increasingly underwriting contracts to allocate more funds towards higher-returning assets, particularly in markets like Japan. The new capital regulations for insurers in Japan, set to begin in the fiscal year starting April, are prompting companies in the sector to ease their financial obligations by selling off some contracts.
At the same time, Japanese life insurers are refocusing on acquisitions both domestically and internationally after a period of slower activity following a series of large-scale deals a decade ago.
Resolution Life is scheduled to become part of Nippon Life Insurance Co by the second half of 2025. In the agreement with Resolution Life, the assets connected to the contract will remain with Protective Life, but income and expenses, including investment gains and losses, will be transferred to the reinsurance firm.
