Daiichi Life Insurance Co., Ltd. has transferred selected risks from a yen-denominated in-force block of whole life and annuity policies under a reinsurance agreement with Prismic Life Reinsurance International, Ltd., while retaining policyholder obligations and servicing functions.
The transaction centers on an in-force portfolio, allowing Daiichi to cede specified risks tied to long-duration liabilities without altering its role in policy administration. The insurer will continue servicing contracts and maintaining direct relationships with policyholders.
The move comes against a backdrop of a large and stable in-force book. Daiichi reported total annualized net premiums of ¥1,957.3 billion ($12.33 billion) for policies in force as of December 31, 2025, with individual annuities increasing to 106.0% of prior levels, according to its latest financial disclosure .
Daiichi’s financial position reflects the long-duration nature of its business. Total assets stood at ¥35,364,060 million ($222.79 billion) as of December 31, 2025, with securities accounting for more than 80% of invested assets. Policy reserves remained above ¥28,072,101 million ($176.85 billion), indicating the size of obligations linked to life and annuity products.
The company’s solvency margin ratio was 831.8% as of December 31, 2025, compared with 852.9% in the prior period. These figures are used by insurers to assess capital adequacy relative to risk exposure.
The agreement follows earlier transactions involving Prismic and Japanese life insurance liabilities. In January 2025, Prudential Financial, Inc. disclosed a reinsurance agreement covering about $7 billion of reserves tied to USD-denominated Japanese whole life policies with a Prismic subsidiary. That transaction brought Prismic’s assets under management to about $17 billion.
Prismic has also secured capital to support similar deals. In November 2025, the company completed a $1.3 billion capital raise, adding to more than $1.5 billion previously raised to support reinsurance of approximately $17 billion of US and Japanese liabilities. The platform operates through Bermuda-based reinsurance entities backed by institutional investors, with asset management spanning public and private markets.
Prismic established PrismicLife Solutions & Brokerage K.K. in Tokyo in October 2024 to provide reinsurance structuring services to Japanese insurers. The unit supports transactions involving local cedants and international reinsurance capacity, including arrangements such as the Daiichi deal.
This setup aligns with continued activity involving Japanese life insurers entering reinsurance agreements tied to legacy portfolios and capital considerations.
Prismic Life Reinsurance International, Ltd. holds financial strength ratings of A- from AM Best and A+ from Rating and Investment Information, Inc. (R&I). These ratings assess the reinsurer’s ability to meet policy obligations.
“This agreement reflects Prismic’s continued commitment to supporting the Japan insurance market with tailored reinsurance solutions that help insurers efficiently manage their growth, risk, and capital objectives,” said Nandini Mongia, group executive chair and CEO of Prismic.
“We value our strong relationship with Daiichi and are pleased to support them with a solution that complements their ongoing servicing and customer commitments,” she added.
“This transaction further strengthens Prismic’s platform by continuing to diversify our earnings streams and risk profile, reinforcing the scalability and resiliency of our long-term reinsurance model,” Mongia said.
No financial terms of the agreement were disclosed.
