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SCOR and Japan Post sign MOU for SCOR-managed reinsurance investment structure
The MOU covers retrocession of underwriting risks tied to Japan Post Insurance's postal life policies, with SCOR set to manage the vehicle and Japan Post Insurance investing under the terms.
France-headquartered reinsurer SCOR has signed a memorandum of understanding with Japanese insurer Japan Post Insurance to set up a reinsurance investment structure, according to Artemis.
The structure is intended to feature business from both firms, invested by Japan Post Insurance, and is linked to retrocession of underwriting risks related to Japan Post Insurance's Postal Life Insurance Policies, which are reinsured by Japan Post Insurance from the Organization for Postal Savings, Postal Life Insurance and the Post Office Network.
SCOR will manage the vehicle and is also expected to invest in it for risk management purposes, while Japan Post Insurance plans to hold less than 50% of the voting rights. The firms noted that discussions will continue on the transaction details, including the investment, and they plan to proceed with the retrocession and investments once approvals are received.
Artemis said the parties are aiming for risk diversification benefits and additional sources of returns, using a vehicle that is planned to operate in a sidecar-like manner with a defined and diversified portfolio.