Hong Kong and Singapore - TLB  Japan - Aegon Sony Life and SARe Asia - ADAMS TLB uses third party mortality reinsurance for its universal life  and traditional policies. Mortality reinsurance takes the form  of yearly-renewable term excess-of-retention or quota-share  arrangements, and is typically arranged through a pool of  reinsurers, which are generally the leading providers in the  reinsurance industry. Aegon Sony Life reinsures 100% of its guarantees on variable  annuities with SARe. Aegon Sony Life may use third party  reinsurance for a minor part of this, taking into account transfer  pricing issues. ADAMS’ business model mainly creates value by offshore  reinsurance through an Aegon reinsurer, whereby risk-based  premium is acquired for the group. ADAMS positions itself as  an independent marketing services provider, which allows it to  front partnerships with local insurers, particularly where Aegon  does not have a local presence. ADAMS also generates some fee  income from its services. There is also a coinsurance arrangement with the affiliate  company TLIC for some universal life business. The mortality risk  on these products is first ceded to third party reinsurers, and the  retained risks are 100% or 80% coinsured with TLIC. 77