Resolution Life Completes Landmark $1 Billion Reinsurance Deal in Hong Kong, Expanding Asian Footprint

Resolution Life, a Bermuda-based global life insurance group specializing in reinsurance and portfolio management, has finalized a $1 billion block reinsurance transaction with an undisclosed leading life insurer in Hong Kong, marking its inaugural reinsurance deal in the region.

This strategic transaction, announced on June 5, 2025, underscores Resolution Life’s growing presence in Asia’s dynamic insurance market, following a similar deal in Japan in May 2025. The agreement was advised by international law firm Linklaters, with a cross-border team led by Tokyo-based partner and global insurance sector co-head Tracy Whiriskey and Hong Kong-based global corporate chairman Matthew Middleditch.

Resolution Life Completes $1 Billion Reinsurance Deal

Details of the Resolution Life Reinsurance Transaction

The $1 billion reinsurance deal involves an in-force portfolio of participating whole life and annuity policies, transferring nearly all associated risks from the ceding insurer to Resolution Life. Key aspects of the transaction include:

• Risk Transfer: Resolution Life assumes market risk (fluctuations in financial markets impacting policy values), policyholder behavior risk (uncertainties around surrenders or withdrawals), and mortality risk (variations in policyholder longevity). This comprehensive risk transfer allows the ceding insurer to optimize its capital and focus on new business.

• Policy Administration: The ceding insurer, whose identity remains confidential, retains responsibility for servicing and administering the policies, ensuring continuity for policyholders while Resolution Life manages the financial risks.

• Portfolio Composition: The portfolio includes participating whole life policies, which offer policyholders potential dividends based on insurer performance, and annuity policies, providing guaranteed income streams. These complex products require sophisticated actuarial and investment management, areas where Resolution Life’s expertise in managing $385 billion in assets across 14 million policyholders globally is critical.

• Strategic Impact: The deal enhances Resolution Life’s scale in Asia, building on its $19 billion in equity investments since 2003 for reinsurance, acquisitions, and consolidation. It supports the ceding insurer’s balance sheet optimization and aligns with Resolution Life’s mission to deliver stable outcomes for policyholders in a well-capitalized environment.

• Legal and Advisory Support: Linklaters’ cross-jurisdictional team, supported by Eversheds Sutherland London and Walkers Bermuda, provided legal counsel, leveraging prior experience with Resolution Life’s Japanese reinsurance deals and its 2024 acquisition by Nippon Life Insurance Company for $8.2 billion, valuing Resolution Life at $10.6 billion.

Rushabh Ranavat, CEO for Asia at Resolution Life, emphasized the deal’s significance: “This transaction demonstrates our commitment to providing holistic reinsurance solutions to life insurers across Asia, supporting improved policyholder outcomes in Hong Kong and beyond.”

Context and Market Significance

Hong Kong’s life insurance market, with $540.8 billion in total revenue premiums for in-force long-term business in 2021, is a hub for complex products like participating whole life and annuities. Block reinsurance, as seen in this deal, is increasingly vital for insurers to manage capital-intensive legacy portfolios, freeing resources for innovation and growth. Resolution Life’s entry into Hong Kong follows its May 2024 reinsurance deal with Tokio Marine & Nichido Life Insurance Co. (Anshin Life) in Japan, signaling a broader Asian expansion strategy post-acquisition by Nippon Life.

The transaction reflects growing demand for reinsurance in Asia, driven by regulatory pressures, rising capital requirements, and the need to manage long-term liabilities. Hong Kong’s Insurance Authority reported a 12.7% increase in reinsurance inward gross premiums to $5.7 billion in Q1 2023, highlighting the market’s appetite for such solutions.

Comparison with Similar Reinsurance Deals

To contextualize Resolution Life’s Hong Kong deal, below is a comparison with other notable reinsurance transactions in Asia involving life and annuity portfolios, based on available data from 2024 and 2025:

Transaction	Resolution Life Hong Kong (2025)	Resolution Life Japan (2024)	RGA Japan (2024)	Pacific Life Re Japan (2024)
Value	$1B	Not disclosed (~$0.7B est.)	$6.4B	Not disclosed
Cedant	Unnamed HK insurer	Anshin Life (Tokio Marine)	Japan Post Insurance	Anshin Life (Tokio Marine)
Portfolio Type	Participating whole life, annuities	Whole life (in-force, paid-up)	Individual annuities	Whole life (in-force)
Risks Transferred	Market, policyholder behavior, mortality	Interest rate, policyholder behavior, mortality	Market, longevity	Interest rate, asset-liability
Administration	Cedant retains	Cedant retains	Cedant retains	Cedant retains
Region	Hong Kong	Japan	Japan	Japan
Strategic Goal	Capital optimization, risk management	Risk reduction, capital relief	Capital efficiency	Asset-liability management
Legal Advisors	Linklaters, Eversheds, Walkers	Linklaters	Not disclosed	Not disclosed

Analysis

• Scale and Scope: Resolution Life’s Hong Kong deal ($1 billion) is smaller than RGA’s $6.4 billion transaction with Japan Post Insurance but significant for its entry into Hong Kong. The Japan deal with Anshin Life (estimated at $0.7 billion) focused on whole life policies, while the Hong Kong deal includes annuities, which carry complex payout structures.

• Risk Profile: All deals transfer market and policyholder behavior risks, but Resolution Life’s Hong Kong transaction uniquely emphasizes mortality risk for annuities, requiring precise longevity projections. RGA’s deal focused on longevity risk, while Pacific Life Re targeted interest rate risk for asset-liability matching.

• Market Entry: Resolution Life’s Hong Kong deal mirrors its Japan transaction as a market entry strategy, leveraging Nippon Life’s regional expertise. RGA and Pacific Life Re, established in Japan, pursued larger-scale capital relief for cedants.

• Cedant Role: In all cases, cedants retain policy administration, ensuring seamless policyholder experience while reinsurers manage financial risks, a standard practice in block reinsurance.

Outlook and Industry Impact

Resolution Life’s Hong Kong deal, supported by its $100 billion portfolio of life and annuity reserves post-Protective Life’s $9.7 billion reinsurance agreement in March 2025, positions it as a key player in Asia’s reinsurance market. The transaction aligns with industry trends, as Hong Kong insurers increasingly use reinsurance to manage legacy blocks amid rising interest rates and regulatory capital demands. However, risks include market volatility affecting annuity guarantees and potential policyholder behavior shifts, which Resolution Life’s expertise mitigates.

Consult Everbright Actuarial Consulting for Expert Guidance

To understand reinsurance deal or explore tailored reinsurance and risk management solutions, contact Everbright Actuarial Consulting at info@ebactuary.com . Our experienced actuaries and brokers offer comprehensive market insights, personalized consultations, and strategic advice to navigate Hong Kong’s evolving insurance landscape. Reach out for educational resources or to optimize your insurance portfolio with confidence.