Bermuda-based reinsurer Fortitude Re has announced a $4 billion reinsurance agreement with Japan’s Taiyo Life Insurance Company, which will expand its footprint in the Japanese market.

The deal, which was signed and closed at the same time, became effective February 28. Under the terms, Taiyo Life, a wholly owned subsidiary of T&D Holdings Inc, has ceded a significant portion of its whole life annuity business to Fortitude International Reinsurance Company Ltd, a Fortitude Re subsidiary. Taiyo Life will continue to service and administer the policies.

This is the second such transaction between Fortitude Re and Taiyo Life and marks Fortitude Re’s sixth reinsurance deal in Japan.

“We are honoured that Taiyo Life continues to place their trust in us and we look forward to building on our successful partnership,” said Leonard Lin, head of Asia at Fortitude Re.

“This transaction further demonstrates our deep commitment to the Japan market and to helping our partners achieve their risk, capital and growth aspirations.”

Alon Neches, chief executive of Fortitude Re, added: “The track record Fortitude Re has built in Japan underscores the power of the partnership between Fortitude Re and its shareholders. T&D’s origins and extensive activities in Japan, combined with Carlyle’s 25-year track record in the country and leading asset origination capabilities, have helped grow our business, ensuring that our policyholders benefit from the compelling value proposition we have built.”

Mr Neches said the latest agreement reinforced the firm’s strategy of delivering “innovative solutions that provide long-term value for insurers in Japan and around the world”.

The Taiyo Life deal comes on the heels of Fortitude Re’s recent announcement of a reinsurance agreement with a subsidiary of the Unum Group in the United States. That deal, focused on long-term care and individual disability insurance, is expected to bring Fortitude Re’s total new reserves originated this year to more than $8 billion.