Daiichi Life and Prismic Reinsurance Agreement: Insights and Impact

Daiichi Life Insurance Co., Ltd. has completed a strategic reinsurance transaction with Prismic Life Reinsurance International, Ltd., transferring specific risks from its yen-denominated whole life and annuity policies. Despite risk ceding, Daiichi continues to fulfill policyholder obligations, ensuring seamless interaction with policyholders remains unchanged.

This agreement covers a substantial in-force portfolio, which boasted total annualized net premiums of ¥1,957.3 billion ($12.33 billion) by the end of 2025. Notably, individual annuity policies experienced significant growth, increasing by 106% compared to the prior year.

Daiichi's operational model features long-duration liabilities, marked by total assets reaching ¥35,364,060 million ($222.79 billion) as of December 31, 2025. Over 80% of these assets are invested in securities. Daiichi's policy reserves exceed ¥28,072,101 million ($176.85 billion), representing an extensive commitment to life and annuity products. The insurer reported a solvency margin ratio of 831.8% at the close of 2025, reflecting robust capital adequacy despite a slight decrease from 852.9% in the previous period.

This transaction aligns with Prismic's ongoing initiatives in the Japanese insurance sector, reflecting similar engagements like their January 2025 agreement with Prudential Financial, Inc., covering around $7 billion in USD-denominated Japanese policies. Prismic's robust financial framework includes $17 billion in assets under management, bolstered by capital raises totaling $2.8 billion to support US and Japanese liabilities.

Operating through Bermuda-based entities supported by institutional investors, Prismic established a Tokyo unit, PrismicLife Solutions & Brokerage K.K., to aid Japanese insurers in accessing international reinsurance capacity. This platform streamlines transactions like the Daiichi deal, ensuring effective local support for cedants.

Nandini Mongia, group executive chair and CEO of Prismic, highlighted, “This agreement underscores Prismic’s dedication to the Japan insurance market, offering customized reinsurance solutions that enable insurers to efficiently manage growth, risk, and capital objectives.” She reiterated the value of their partnership with Daiichi, supporting sustained service and customer commitments.

Financial specifics of the Daiichi-Prismic arrangement remain undisclosed, maintaining industry norms on transaction confidentiality.