Global reinsurer SCOR and Japan Post Insurance Company have signed a memorandum of understanding (MoU) for the transfer of the latter’s postal life insurance policies and the establishment of a reinsurance vehicle designed to assume underwriting risks held by both companies.
Post Life Insurance policies are reinsured by the Postal Savings Organization, Post Life Insurance and Japan Post Insurance Company of the post office network. A memorandum of understanding has been signed involving the structure to transfer the underwriting risks associated with these policies to the management of SCOR.
Under the terms of the memorandum of understanding, Japan Post Insurance will also invest in reinsurance vehicles but intends to hold less than 50% of the voting rights.
SCOR will also invest in the instrument and manage it for risk management purposes. The platform is designed to assume the underwriting risks of Japan Post Insurance Company and SCOR, and is therefore expected to provide both companies with a greater degree of risk diversification while creating new sources of investment returns.
“Going forward, the parties intend to continue to discuss the details of the above-mentioned transactions, investments in reinsurance instruments and related matters. Subject to reaching a final agreement regarding such discussions and obtaining the necessary regulatory approvals and licenses, Japan Post Insurance and SCOR intend to proceed with the initiation of the above-mentioned transactions and investments in reinsurance instruments.
“Once a formal decision is made regarding the execution of such an investment, it will be disclosed immediately,” the pair said in a statement.
