- Largest European direct reinsurance from Switzerland to Bermuda with CHF4.0bn (US$4.3bn) closed-book of individual life policies covering market risks and insurance risks
- The transaction de-risks 80% of Allianz Suisse's Traditional Individual Life Business
- Diversification of Resolution Re balance sheet with total pro-forma regulatory capitalisation of US$1.5bn
- Resolution Re remains well positioned for further growth internationally
Resolution Life, a long-term legacy life insurance solutions provider, announces that its Bermudian reinsurance platform, Resolution Re, has entered into a reinsurance agreement with Allianz Suisse Lebensversicherungs-Gesellschaft AG ("Allianz Suisse") that 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 CHF4.0bn (US$4.3bn) in total liabilities.
The reinsurance 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 Life has previously acquired AMP Life in Australasia and in the U.S. it has acquired Voya Financial, Inc.'s individual life in-force business as well as recently signing a reinsurance agreement with Lincoln National Corporation. Combined with the Group's Bermuda reinsurance base, Resolution Life currently manages c.US$60bn of assets, employs over 1,500 people and provides services to approximately 2.5m policyholders. Earlier this year, Resolution Life completed a c.US$1.6bn equity capital raise and has significant capital to deploy for future growth transactions.
Resolution Re's CEO Steve Hales said
"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."
Chercher Yang, Resolution Life Group Head of M&A said:
"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."
Remo Cavegn, Chief Risk Officer of AllianzSuisse, 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."
Credit Suisse International acted as financial advisor. Herbert Smith Freehills LLP's London office and Lenz Staehelin's Zurich office acted as legal advisors to Resolution Re and Ernst Young Switzerland advised on Swiss tax aspects. KPMG Zurich advised Allianz Suisse on the transaction and Baer Karrer, Zurich acted as legal advisors to Allianz Suisse.
ENDS
Notes to Editors:
About Resolution Life
Resolution Life is a global life insurance group focusing on the acquisition and management of portfolios of life insurance policies. Since 2003 to date, prior Resolution entities together with Resolution Life have deployed c.US$16bn of equity in the acquisition, reinsurance, consolidation and management of life insurance companies. Together, these companies have served the needs of c.12.6m policyholders while managing over US$357bn of assets. Resolution Life today has operations in Bermuda, the U.K., the U.S., Australia and New Zealand, and has raised almost $5bn of equity to partner in assisting the restructuring of the primary life insurance industry globally. Resolution Life provides a safe and reliable partner for insurers as they restructure by:
- Focusing on existing customers, rather than seeking expansion by new sales
- Delivering policyholder benefits in a secure, well capitalised environment
- Returning capital over time to our institutional investors in the form of a steady dividend yield
About Resolution Re
Resolution Re is a Class E, Bermuda Monetary Authority (BMA) regulated reinsurer licensed in 2018 and holds an Insurance Financial Strength Rating of A3 from Moody's. It provides the primary life insurance sector with reinsurance solutions for de-risking legacy life insurance portfolios in mature markets across the world.
About Allianz Suisse
The Allianz Suisse Group has a premium volume of over CHF 3.6bn, making it one of the leading insurance companies in Switzerland. Its subsidiaries include Allianz Suisse Insurance Company Ltd, Allianz Suisse Life Insurance Company Ltd, CAP Legal Protection Insurance Company Ltd and Quality1 AG. The Alliance Suisse Group's business activities are in the fields of insurance, pensions and assets. It employs around 3,600 people and is part of the international Allianz Group, which is represented in over 70 countries and on all continents. In 2013, the Allianz Group was ranked a Supersector Leader by the Dow Jones Sustainability Index (DJSI). The company has held leading positions on this world-renowned sustainability index since the year 2000.
In Switzerland, more than a million private individuals and over 100,000 companies in all phases of life and development rely on the advisory services and insurance and pension cover of Allianz Suisse. A dense network of 120 branches ensures that we are close to our customers throughout Switzerland.
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