Bermudian-based Athene Holding Ltd, the financial services company, has executed its first block reinsurance transaction in Japan.

Under the terms of the agreement with FWD Life Insurance Co Ltd, a Japanese-domiciled insurer, Athene will reinsure an in-force block of whole life insurance policies.

In conjunction with the transaction, Athene said, it has also entered into an agreement to retrocede the mortality risk associated with the block to Swiss Re, a leading mortality reinsurer.

“We are pleased with this important extension of Athene’s franchise overseas, which demonstrates the capabilities we have developed to support the strategic objectives of insurance companies in the Japanese market,” said Grant Kvalheim, president of Athene.

“We look forward to continued growth in this market by delivering thoughtful, customised solutions to clients seeking additional flexibility.”

Matthew Michelini, Apollo partner and head of Asia Pacific, said: “This transaction builds on the power of Apollo and Athene’s combined offerings to insurers in Japan, helping them to provide their policyholders and clients with long term retirement income.”

Michael van Vuuren, FWD’s group chief actuary, said: “We are pleased to partner with Athene on this transaction, which furthers our risk management objectives and delivers significant capital benefits to FWD.”

The company said this is Athene’s inaugural block reinsurance transaction in the region.

Since 2020, Athene said, it has been active in the local new business reinsurance market, with four flow reinsurance agreements executed to date in Japan.

Athene, through its subsidiaries, is a leading financial services company specialising in retirement services with gross invested assets of $261.2 billion as of September 30, and operations in Bermuda, the United States, Canada, and Japan.