Japan Post Insurance has signed an MOU with SCOR SE to manage life insurance risks of the Japanese insurer through a new joint investment vehicle.
The MOU covers three areas:
The cession of the underwriting risks under Japan Post Insurance’s “Postal Life Insurance policies”
The establishment, investment and operation by SCOR of a reinsurance vehicle for risk management purposes, intended to assume underwriting risks held by both Japan Post Insurance and SCOR and thereby provide both parties with risk diversification benefits.
Japan Post Insurance’s investment in the reinsurance vehicle for the purpose of ensuring its financial soundness, with the expectation that the reinsured contracts ceded thereto will be appropriately managed by the ceding reinsurer.
Going forward, both companies will continue discussions on the details of the transaction, the investment in the reinsurance vehicle and related matters.
The two companies intend to proceed with the commencement of the transaction outlined above and the investment in the reinsurance vehicle on receipt of the necessary regulatory approvals and licences.