A subsidiary of a U.S. life insurer has agreed to serve as reorganization sponsor for a Japanese life insurer that declared bankruptcy in October 2008.

Gibraltar Life Insurance Company Ltd., a unit of Principal Financial Inc., Newark, N.J., will be acquiring the Japanese life insurer, Yamato Life Insurance Company, Tokyo, “without purchase price consideration,” Prudential says.

“It is expected that Yamato will become a wholly owned subsidiary of Gibraltar Life and that Gibraltar Life will contribute capital, from its general account assets to Yamato in connection with the acquisition, Prudential says.