Resolution Re completes reinsurance agreement with Allianz Suisse

Written by Michael Griffiths

30/09/2021

Resolution Life has announced that its Bermudian reinsurance platform, Resolution Re, has entered into a reinsurance agreement with Allianz Suisse.

The deal transfers a quota share of 80% of the liabilities of Allianz Suisse’s Traditional Individual Life Business, made up of endowment and annuity policies – deferred and in pay-out – relating to coverage for market risks and insurance risks.

The reinsured business is a closed-book of policies which are in run-off, with no new business and comprises $4.3bn in total liabilities.

Combined with its Bermuda reinsurance base, Resolution Life currently manages $60bn of assets and provides services to approximately 2.5 million policyholders. Resolution Life confirmed that the transaction, which has been approved by the Swiss Financial Market Supervisory Authority (FINMA), covers market risks and insurance risks.

Allianz Suisse will continue to service the reinsured business, while Resolution Re and Allianz Suisse will work in partnership together for the benefit of policyholders and the continued successful management of the reinsured policies.

Resolution Re CEO, Steve Hales, commented: “We are delighted to have signed this reinsurance agreement with Allianz Suisse, the largest European-to-Bermuda life legacy portfolio reinsurance transaction to date and a great example of our holistic approach to managing biometric and asset risks that demonstrates the strength of Resolution Re’s global reinsurance offering.

“I am proud to be part of the talented, diverse team that has made this happen and thank the Allianz Suisse team for their collaborative and ‘can-do’ approach.”

Resolution Life group head of M&A, Chercher Yang, added: “This transaction was a real partnership between Resolution Life and the Allianz Group teams, working together during a difficult period of lockdown to achieve the inaugural Swiss to Bermuda direct reinsurance agreement. We believe this is a great example of Resolution Life’s continuing commitment to provide de-risking solutions to primary life insurers globally.”

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