Resolution Life Announces $9.7 Billion Reinsurance Deal with Protective Life

Resolution Life has announced a landmark $9.7 billion reinsurance deal with Protective Life Corp, marking one of the largest transactions of its kind in Bermuda. The deal involves blocks of in-force structured settlement annuities and universal life insurance, with Protective Life retaining policy administration. The life insurance sector is witnessing a growing trend in offshore reinsurance as U.S. insurers look for ways to manage capital amidst increasing ceded reserves, which have nearly doubled since 2019.
This agreement exemplifies the shift toward offshore options, providing life insurers with scale and new business opportunities, although it has raised concerns among some experts regarding the lack of regulatory transparency and potential risks associated with these agreements. Critics argue that the Bermuda Monetary Authority’s accounting methods could pose risks to U.S. policyholders. The substantial move toward offshore reinsurance is viewed as both a strategic necessity and a source of worry within the industry, especially in light of recent scandals surrounding Bermuda firms.
As regulators scramble to address these risks, companies like Resolution Life see these transactions as essential in navigating market challenges. However, concerns regarding the security of policyholders and the integrity of financial reporting in offshore jurisdictions remain prominent as the landscape evolves.