Resolution Life Partners with Protective in Major Reinsurance Agreement
Resolution Life has finalized a substantial $9.7 billion reinsurance deal with Protective, which is a U.S. subsidiary of Dai-ichi Life Holdings, Inc. This agreement involves Protective’s subsidiaries, Protective Life Insurance Company and West Coast Life Insurance Company, transferring specific blocks of structured settlement annuities and secondary guaranteed universal life policies, which are currently in runoff, to Resolution Life.
Under this agreement, Protective will transfer approximately $9.7 billion in reserves to Resolution Life while continuing to manage the administration of the policies. This continuity ensures that customers will experience consistent service. Protective views this transaction as a strategic move to mitigate market risks and free up capital, which can be invested in future growth opportunities, including acquisitions and bolstering its core retail sectors such as Protection, Retirement, Asset Protection, and Employee Benefits.
Resolution Life highlighted that this agreement strengthens its status as a premier global manager of in-force life insurance, increasing its total to about $100 billion in general account life and annuity reserves, with over four million policies currently active.
Rich Bielen, the President and CEO of Protective, expressed enthusiasm about the deal, stating, “At Protective, we are thrilled to announce this strategic reinsurance agreement with Resolution Life. This transaction marks a crucial milestone, enabling us to generate capital that can be invested for sustained growth.” He affirmed the company’s commitment to expanding life insurance sales through their valued distribution partners while continuing to provide outstanding service to their customers.
Warren Balakrishnan, the US CEO of Resolution Life, commented on the partnership, “This strategic transaction with Protective highlights our capability to manage intricate life and annuity products at scale. Our robust capital strength and a proven track record offer a reliable, long-term partnership for Protective Life and its policyholders.”
Moses Ojeisekhoba, President of Resolution Life, added, “This is an exciting period for Resolution Life. Through this transaction, we continue to empower the primary life insurance industry, providing long-term capital for growth to respond to the evolving needs of policyholders. Following Nippon Life’s recent acquisition of Resolution Life, we are poised to accelerate our growth in the dynamic, multi-trillion-dollar global life and annuity consolidation sector.”
