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RGA completes two annuity transactions covering $3 billion of reserves

2nd November 2018 - Author: Charlie Wood

Reinsurance Group of America, a leading global life reinsurer, has completed a set of transactions with John Hancock Life Insurance Company that will see a subsidiary of the firm acquire an in-force block of individual payout annuities and provide reinsurance on a second block of similar business contracted in New York.

Reinsurance Group of America logoIn aggregate, approximately $3 billion of statutory reserves will transfer to RGA along with a diversified portfolio of assets.

John Hancock will continue to service and administer the policies. The transaction closed on 26 September with an effective date of 1 July.

“The combination of a premier insurance carrier and desirable characteristics of the blocks makes this transaction an ideal fit within RGA’s strategic initiative to grow our longevity and asset-intensive business,” said John Laughlin, Executive Vice President, Global Financial Solutions, RGA.

“John Hancock is a long-standing partner of RGA, and we very much value their continued confidence in our ability to execute and provide long-term support for their strategic goals.”

RMS

In addition, RGA Life Reinsurance Company of Canada closed on a transaction with The Manufacturers Life Insurance Company (Manulife) to reinsure mortality and lapse risk from a block of Canadian universal life policies at the end of September.

The transaction was a follow-on to a similar agreement that closed in March 2018. The agreements, which transfer biometric and policyholder behavior but not investment risk, cover approximately 130,000 policies.

“RGA Canada worked closely with Manulife to develop a transaction tailored to their specific needs and objectives,” said Alka Gautam, President and Chief Executive Officer, RGA Canada.

“We have a strong relationship with Manulife and we are proud to have implemented a customized innovative solution for our client.”

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