RGA partners with American National for $3.5 billion coinsurance deal

Global life and health reinsurer Reinsurance Group of America (RGA) has announced an agreement with American National Insurance Company and its affiliates to reinsure a diversified block of life insurance business through a coinsurance arrangement.

Under the terms of the agreement, approximately $3.5 billion of American National’s statutory reserves will be transferred to RGA’s subsidiaries. American National will continue to provide policyholder service and support.

Senan O’Loughlin (pictured above), executive vice president of US individual life at RGA, stated that the agreement represents an expansion of the relationship with American National.

He said that the coinsurance agreement is a result of RGA’s close collaboration with clients and its understanding of their needs, allowing the company to create solutions that align with the strategic business objectives of its clients.

The transaction, which has an effective date of July 1, was finalized on Aug. 26. Wells Fargo served as the exclusive financial advisor to RGA, and Clifford Chance US LLP provided legal counsel. Further details of the transaction were not disclosed.

RGA Q2 results

Earlier this month, RGA also reported a net income of $203 million, or $3.03 per diluted share, for the second quarter.

This is a slight decrease from $205 million, or $3.05 per diluted share, in the same quarter last year. The company’s adjusted operating income for the quarter reached $365 million, or $5.48 per diluted share, compared to $297 million, or $4.40 per diluted share, in the previous year.

Meanwhile, RGA’s consolidated net premiums totaled $3.9 billion in the second quarter, marking a 17.5% increase over the same period in 2023. This figure includes an adverse net foreign currency effect of $33 million.

“Our Asia Traditional and Financial Solutions businesses had a very good quarter, and our U.S. Traditional and EMEA Financial Solutions areas also performed well. We had a solid quarter of in-force transactions, with $307 million of capital deployed. Additionally, we continued to see good momentum in organic new business activity,” CEO Tony Cheng said.

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