National Western Life Insurance Company (NWLIC), part of National Western Life Group, Inc., has completed an annuity reinsurance transaction with Bermuda domiciled reinsurer, Prosperity Life Assurance Limited, effective December 31st, 2020.
Prosperity, which is rated A- (Excellent) by A.M. Best, is an emerging provider of bespoke and innovative reinsurance solutions to the life insurance and annuity sector.
The reinsurance transaction, designed to expand financial flexibility and provide opportunity for incremental earnings at NWLIC, covers approximately $1.7 billion in fixed annuity reserves.
According to NWLIC, the deal will improve its overall financial performance and also risk-based capital ratios.
“By reinsuring older fixed annuity business, we anticipate improving our already strong capital position and RBC ratio as well as increasing our financial flexibility,” said Ross Moody, Chairman of the Board and Chief Executive Officer (CEO).
Under the terms of the arrangement, NWLIC will continue to both administer and service the policies included in the transaction.
The life insurer notes that this transaction with Prosperity further supports and reinforces its strategic commitment to enhance its product portfolio management efforts, while at the same time modernise its technology platforms supporting its operations.