MassMutual, Nationwide Reach $6 Billion Life Risk-Transfer Deal

Massachusetts Mutual Life Insurance Co. agreed to have Nationwide Mutual Insurance Co. reinsure a book of life insurance policies, freeing up about $6 billion of reserves.

The transaction centers around universal life policies with secondary guarantees, according to an emailed statement seen by Bloomberg Thursday. The deal is expected to be completed in the current quarter.

Reinsurance deals allow carriers to alleviate strain on their balance sheets, potentially boosting available capital to support their sales expansions amid strong demand for annuities and life insurance products.

“This transaction creates capital and other economic benefits that support our continued investment in long-term ...