Resolution Re and Allianz Suisse Life close record-breaking deal

Resolution Re has completed a reinsurance agreement with  Allianz Suisse Life. The deal represents the largest ever European direct reinsurance from Switzerland to Bermuda, with a Sfr4bn ($4.3bn) closed-book of individual life policies covering market and insurance risks. The policies are in run-off.

The transaction transfers a quota share of 80% of Allianz Suisse’s traditional individual life business liabilities, made up of endowment and annuity policies (deferred and in pay-out) relating to coverage for market risks and insurance risks. The Swiss Financial Market Supervisory Authority has already approved the deal.

Under its terms, Allianz Suisse will continue to service the reinsured business, and the companies will work in partnership to ensure continued successful management of the policies.

The transaction follows Resolution’s acquisition of AMP Life in Australasia last July and Voya Financial’s individual life in-force business in January. Earlier this month, it also signed a reinsurance agreement with Lincoln National Corporation.

Combined with the Group’s Bermuda reinsurance base, Resolution Life currently manages about $60bn of assets and provides services to approximately 2.5m policyholders. Earlier this year, it completed a $1.6bn equity capital raise giving it “significant capital to deploy for future growth transactions”, according to the reinsurer.

“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,” said Resolution Re CEO Steve Hales.

Remo Cavegn (pictured), Chief Risk Officer of Allianz Suisse, said: “This transaction with Resolution Re benefits Allianz Suisse, the Allianz Group and the policyholders we serve by allowing us to de-risk the balance sheet while ensuring we continue to provide our customers with safe, long-term financial stability for the duration of their policies. We believe Resolution Re to be the right partner for Allianz Suisse to jointly protect our customers’ interests.”

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