Private Equity Insurers Expand Reinsurance Partnerships in Japan

Private equity-backed life insurers are expanding their global footprint by turning to Japan for significant reinsurance partnerships. This week, two major deals underscored the growing collaboration between U.S. insurers and Japanese firms seeking capital relief under new solvency regulations.

Rising Reinsurance Activity

The surge in offshore reinsurance activity has reshaped the life insurance industry. Fitch Ratings reported that ceded reserves climbed to $2.4 trillion in 2024, up from $2 trillion in 2023, driven by annuity sales, partnerships with alternative investment managers, and regulatory changes. Japanese insurers, in particular, are pursuing reinsurance deals to ease the burden of the newly implemented Economic Solvency Ratio.

“For U.S. insurers, Japan represents a strong opportunity for spread-based income,” explained Jamie Tucker, senior director at Fitch Ratings. “We expect this trend to persist in the near-to-intermediate term.”

Athene’s $19 Billion Footprint

Athene, a leading annuity provider and subsidiary of Apollo Global Management, finalized a reinsurance deal with Sony Life Insurance Co. Under the agreement, Athene will reinsure a block of U.S. dollar-denominated whole life policies, with Swiss Re retroceding all mortality risk.

This marks Athene’s eighth reinsurance transaction overall and its second with Japanese insurers, bringing its total reinsurance volume in Japan to about $19 billion. Athene executives highlighted their ability to offer tailored solutions and capital flexibility for Japanese policyholders.

Brookfield’s First Japan Deal

Brookfield Wealth Solutions also announced its first reinsurance agreement in Japan with Dai-ichi Frontier Life. The deal enables Dai-ichi Frontier Life to reinsure liabilities to Brookfield’s U.S. subsidiary, American National Insurance Co., on a flow basis.

Brookfield emphasized that Japan, with its $6 trillion life and annuity market, is strategically vital. Since opening a Tokyo office, the company has expanded partnerships with top institutional and wealth investors.

“Our strategy provides Japanese insurers with diversification and access to longer-duration solutions,” said Tomohide Yokooka, managing director of Brookfield’s Tokyo office.

Looking Ahead

With Japan’s insurance market offering both scale and stability, U.S. life insurers are expected to deepen their presence. The growing demand for reinsurance solutions highlights Japan’s role as a critical hub in the evolving global insurance landscape.