RGA International, a subsidiary of Reinsurance Group of America, Incorporated, has entered into a reinsurance transaction with the Belgian subsidiary of Baloise Holdings AG.
Cormac Galvin, Senior Vice President, Head of EMEA, Global Financial Solutions, RGA, commented, “RGA’s expansion in the Continental Europe asset-intensive reinsurance market underscores our deep expertise and strong position in the European market.
“Our team is proud to be a strategic partner to Baloise, providing the guidance and support to enhance their financial efficiency.”
Wim Kinnet, CFO, Baloise Belgium, added, “RGA responded to our risk and capital management needs with a strong solution. RGA has demonstrated to be an excellent partner in addressing the various complexities and intricacies of the current transaction.”
Outlining its motive for the deal, Baloise said it aims to optimise its run-off life insurance portfolio, which comprises around 57,000 life insurance policies with reserves of €900 million. This reportedly equates to approximately 12% of all reserves in the Belgian life business.
“The portfolio, which contains savings and pension products with an average guaranteed rate of return of 3.8%, is being secured through a reinsurance transaction in which all of the portfolio’s financial and biometric parameters are transferred to the reinsurer,” Baloise explained.
The firm added that this transaction represents the next step in its strategy for the life insurance business of focusing on modern insurance products, and will have “no significant influence” on profit nor the solvency ratio of the Baloise Group.
In related news, RGA announced in January a strategic investment and exclusive global life and health reinsurance partnership with insurance technology company DigitalOwl.
