T&D : Announcement of Taiyo Life's conclusion of reinsurance agreements
March 31, 2022 at 03:47 pm IST
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March 31, 2022
T&D Holdings, Inc.
(Security Code: 8795, TSE First Section)
Announcement of Taiyo Life's conclusion of reinsurance agreements
T&D Holdings, Inc. (President: Hirohisa Uehara, "T&D", "We") is pleased to announce that Taiyo Life Insurance Company (President: Naoki Soejima, "Taiyo"), T&D's subsidiary, has successfully entered reinsurance agreements, under which Taiyo cedes its inforce individual annuity business. This is in line with the plan determined by Taiyo as announced on February 14, 2022. Please see below for further details.
1. Purpose of the reinsurance
Securing funds to sustainably pay benefits including annuities to the policyholders, Taiyo aims to reduce its investment risk and to enhance its future profitability and capital efficiency through offloading inforce individual annuity business, which guarantees high interest rate, via reinsurance.
The reinsurance transaction, into which Taiyo has entered, transfers the economic risk of the inforce business and does not cause any changes upon the insurance contracts between the policyholders and Taiyo.
2. Overview of the reinsurance transactions
Taiyo has entered reinsurance agreements with two reinsurers Fortitude Reinsurance Company, Ltd. ("Fortitude Re") and RGA Global Reinsurance Company, LTD. ("RGA"). Fortitude Re is T&D's equity method affiliate and reinsures roughly 70% liability of the target of the reinsurance transaction.
Subject business
A part of inforce business of individual annuity (deferred or annuitized)
Type of reinsurance
Coinsurance*1
Reinsurers
Fortitude Re and RGA
Transaction (liability) size*2
Approx. 580 billion yen in policy reserve (forecasted), as of March 31, 2022
*1 Coinsurance is a type of reinsurance and under which a reinsurer shall take the liability of that terms are economically identical to the terms of the insurance which a cedant (Taiyo, as to the reinsurance transaction we announce herein) issues, and the economic risk of the subject business is substantially transferred to the reinsurer through such reinsurance transaction.
T&D Holdings Inc. published this content on 31 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2022 10:15:46 UTC.
T&D HOLDINGS INC. 
