Pacific Life Re has signed a reinsurance agreement with Japan’s Tokio Marine & Nichido Life Insurance to cover in-force whole-of-life policies.

The reinsurer says the deal will give the Japanese insurer a new way to reduce long-term interest rate risk on its portfolio and lift its asset liability management capabilities.

“Supporting these types of transactions in Japan is a key part of our overall strategy,” Pacific Life Re EVP savings and retirement Phill Beach said.

“By transferring its risk to Pacific Life Re, [Tokio Marine] can efficiently manage and optimise its product portfolio, helping it to achieve its overall business objectives and provide the long-term stability needed to deliver on its promises to policyholders.”

Pacific Life Re provides mortality, morbidity and longevity reinsurance, asset-intensive and capital solutions, and works with clients in Australia, Asia, Europe and North America.