National Western Life Insurance Company (NWLIC), part of National Western Life Group, Inc., has entered into a Funds Withheld Coinsurance Agreement with Bermuda domiciled reinsurer, Aspida Life Re Ltd.
NWLIC agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain liabilities pertaining to an in-force block of annuity contracts issued by the NWLIC before July 1, 2022.
The agreement includes NWLIC ceding Aspida approximately $250mn of statutory reserve liabilities, which have been transferred into a funds withheld account permitted assets.
Additionally, NWLIC will also cede, on a coinsurance with funds withheld basis, a specified quota share of certain annuity contracts issued or to be issued by the Company on or after July 1, 2022.
In order to provide additional security for Aspida’s obligations, and in accordance with the agreement, both parties will establish a trust account for the benefit of the NWLIC in which Aspida will maintain certain assets and grant the NWLIC a first priority security interest in such assets.
