Brookfield Wealth Solutions has signed a reinsurance agreement with Dai-ichi Frontier Life, a major Japanese insurance provider.
The agreement, effective this month, is Brookfield Wealth Solutions’ first Japan-based reinsurance transaction following the establishment of its Tokyo representative office earlier this year.
Under the terms of the agreement, Dai-ichi Frontier Life will reinsure certain liabilities to Brookfield Wealth Solutions’ US subsidiary, American National Insurance Company, on a flow basis. Japan’s insurance sector remains one of the largest globally, with individual life and annuity policies in force exceeding US$6 trillion.
“We are pleased to partner with Dai-ichi Frontier Life on our first reinsurance transaction in Japan,” said Sachin Shah (pictured above), CEO of Brookfield Wealth Solutions. Shah noted that Japan’s life insurance market and macroeconomic conditions make it a strategic focus for the company.
Brookfield Wealth Solutions began its expansion into Japan with the appointment of Tomohide Yokooka as managing director in Tokyo. Yokooka said the company’s approach enables insurance partners in Japan to diversify their asset exposures and access longer-duration solutions.
“We have an active pipeline of opportunities and look forward to partnering with more Japanese insurers as we grow our business significantly in this market,” he said.
In the third quarter of 2024, Brookfield announced its first UK reinsurance transaction, covering £1.08 billion (US$1.4 billion) in pension liabilities through American National Insurance Company. The transaction is expected to close following regulatory approvals.
During the same period, Brookfield originated approximately US$4 billion in proprietary investment strategies and generated US$4 billion in annuity sales, bringing its year-to-date annuity sales to US$12 billion.
Since opening its Tokyo office in 2015, Brookfield has expanded its local team and established partnerships with hundreds of institutional and wealth investors in Japan.
Brookfield’s activity in Japan comes amid a broader trend of international reinsurance transactions in the market. For example, Athene recently announced a deal to reinsure Sony Life’s whole life policies, highlighting continued interest from global reinsurers in Japan’s insurance sector.
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