March 6, 2025 Reinsurance

Protective Announces $9.7B Strategic Reinsurance Agreement with Resolution Life

Business Wire

BIRMINGHAM, Ala.--(BUSINESS WIRE)--
Protective Life Corporation (Protective), a U.S. subsidiary of Dai-ichi Life Holdings, Inc. (TSE:8750), is pleased to announce it has signed a strategic reinsurance agreement with Resolution Life, through which Protective’s operating subsidiaries, Protective Life Insurance Company and West Coast Life Insurance Company, will cede in-scope blocks of structured settlement annuities and secondary guaranteed universal life policies currently in runoff to Resolution Life. Under the terms of the agreement, Protective will cede approximately $9.7 billion in reserves to Resolution Life. Protective will retain administration of the policies, ensuring a consistent customer experience.

This transaction represents an opportunity for Protective to reduce market risk and release capital for investment in growth – both through acquisitions and in its core retail businesses, including Protection, Retirement, Asset Protection and Employee Benefits. Protective also remains committed to its current life insurance product portfolio, including the no-lapse guaranteed universal life policy it offers today.

"At Protective, we are thrilled to announce this strategic reinsurance agreement with Resolution Life. This transaction represents an important milestone, allowing us to generate capital that can be invested for continued growth,” said Rich Bielen, president and CEO of Protective. “We remain committed to growing life insurance sales through our valued distribution partners and look forward to continuing to provide exceptional service to our customers. We are excited about the opportunities it brings for Protective, our customers and our partners."

“This strategic transaction with Protective showcases our ability to manage complex life and annuity products at scale,” said Warren Balakrishnan, CEO, US, Resolution Life. “Our substantial capital strength and proven execution record provide a strong, long-term partner for Protective Life and its policyholders. This transaction is a great example of our reinsurance offering to the US life and annuity market.”

The transaction is expected to be completed in 2025, subject to customary closing conditions and regulatory approval requirements.

Wells Fargo served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to Protective. JP Morgan acted as financial advisor and Debevoise & Plimpton LLP served as legal counsel to Resolution Life.

About Protective

Protective has helped people achieve protection and security in their lives for 118 years. Through its subsidiaries, Protective offers life insurance, annuity, asset protection and employee benefits solutions and is helping nearly 17 million people protect what matters most. Protective’s approximately 3,800 employees put people first and deliver on the company’s promises to customers, partners, colleagues and communities - because we’re all protectors. With a long-term focus, financial stability and commitment to doing the right thing, Protective Life Corporation, a subsidiary of Dai-ichi Life Holdings, Inc., has $125 billion in assets, as of Dec. 31, 2024. Protective is headquartered in Birmingham, Alabama, and is supported by a robust virtual workforce and core sites in the greater Cincinnati area and St. Louis. For more information about Protective, visit www.protective.com.

About Resolution Life

Resolution Life is a global life insurance group focusing on reinsurance and the acquisition and management of portfolios of life insurance policies. Since 2003 to date, prior Resolution entities together with Resolution Life have deployed approximately $19 billion of equity in the acquisition, reinsurance, consolidation and management of life insurance companies. Together, these companies have served the needs of over 13 million policyholders while managing approximately $390 billion of assets. Resolution Life today has operations in Bermuda, the U.K., the U.S., Australia, New Zealand and Singapore assisting the restructuring of the primary life insurance industry globally. Resolution Life provides a safe and reliable partner for insurers by:

Primarily focusing on existing customers, with selective new business growth in strategic markets
Delivering policyholder benefits in a secure, well capitalised environment
Returning capital to our institutional investors in the form of a steady dividend yield

www.resolutionlife.com