The CTS Actuarial Brief, Issue 2: Bermuda adds long-term insurers as the NAIC field-tests a new C-3 Phase I

The past few weeks in two minutes

• Chariot Re takes on Japanese business from MetLife. Chariot Re announced its fourth reinsurance transaction on 13 October. It is a retrocession from MetLife Reinsurance Company of Hamilton, effective 30 September. It covers about $1.6 billion of account value on Japanese USD-denominated whole life and annuity policies. It is Chariot Re's first deal covering Japanese liabilities. Chariot Re is a Bermuda Class E reinsurer co-sponsored by MetLife and General Atlantic. It follows Prismic's $5 billion Prudential deal on USD-denominated Japanese whole life, reported on 5 October. Chariot Re | Prismic deal
• Prudential agrees to sell its Brazil and Mexico businesses. On 20 October Prudential Financial agreed to sell both units to the CNP Assurances Group. The aggregate price is $4.025 billion in cash, subject to adjustments. Closing is expected in the second half of 2027, subject to regulatory approvals. Prudential says proceeds will support capital priorities and growth in retirement, asset management and select protection. Those growth businesses are in the US, Japan and select European markets. The deal follows sales of joint venture stakes in Indonesia, South Africa and Kenya. Prudential
• L&G completes a £1.7 billion buy-in that absorbs a longevity swap. On 13 October L&G announced a £1.7 billion buy-in with the UBS (UK) Group Pension Plan. It covers more than 7,000 members of the plan's UBS Section. L&G calls it the largest announced UK pension risk transfer deal of 2026 to date. The plan's existing longevity hedge with Zurich was novated to L&G. Canada Life Reinsurance reinsures the longevity risk on that hedge. L&G
• Bermuda's Class E registrations are running at triple last year's pace. The BMA's September statistics show nine Class E insurers registered in 2026 up to September. They include West Grove Re, AXA Life Bermuda, Calix Re and three Prudential Bermuda entities. Sun Life Bermuda registered as a Class C insurer on 24 September. It is the third Class C registration of 2026. The BMA's September 2025 statistics showed three Class E registrations at that point. BMA 2026 | BMA 2025
• Manulife has a new Chief Actuary. Sinéad O'Connor became Manulife's Chief Actuary on 12 October. She reports to CEO Phil Witherington and joins the Executive Leadership Team. She was Global Head of Inforce Management. Her earlier roles include Deputy Chief Actuary. She is an FIA and an FSA and is working towards her FCIA. Derek Houle will serve as Appointed Actuary until she completes the Canadian accreditation. Manulife says it will appoint a new Global Head of Inforce Management in due course. Manulife

Worth knowing: the NAIC is field-testing a new C-3 Phase I

An NAIC field test of a revised C-3 Phase I is in its final weeks. The draft specifications are an American Academy of Actuaries document. Its C3 Subcommittee was asked to revisit C-3 for VM-22 and the new GOES scenarios. It is also reviewing alignment with C-3 Phase II. A stated goal: relatively higher interest rate exposure should mean relatively higher C-3 capital (NAIC).

Participants model all business now in C-3 Phase I. That includes single premium life and annuity products. Fixed indexed annuities are added for testing in an optional run. Most runs use 1,000 GOES scenarios. They compare today's surplus-based metric with an asset-based metric consistent with C-3 Phase II. The asset-based metric floors each scenario result at cash surrender value and uses CTE 90. Other runs test VM-20 default costs, a prescribed equity approach and net asset earned rate discounting.

The NAIC's field test Q&A, last updated 13 October, asks for results by late October (NAIC). Participants then present in regulator-only sessions from November to mid-December. The NAIC's model office analysis is due in public meetings by the end of 2026. The draft specifications say the framework is intended to take effect for year-end 2027.

The Life RBC (E) Working Group meets on 28 October and again on 15 November. A GOES model governance framework is also exposed for comment until 4 November (NAIC). The new framework is not adopted, though GOES-based C-3 changes apply from 2026.

We will be back on 10 November. If this issue was useful, please pass it to a colleague. For a confidential conversation about your next move or your team's hiring, email jobs@concordiatalentsolutions.com.