Reinsurance News

RGA reinsures JPY 153bn of statutory reserves for Daido Life

4th April 2023 - Author: Kane Wells

Global life and health reinsurer Reinsurance Group of America (RGA) has reached an agreement with Daido Life Insurance Company, a subsidiary of T&D Holdings, to reinsure 153 Billion JPY of statutory reserves through coinsurance.

Reinsurance Group of America logoSimon Armand-Smith, Vice President, Business Development, Global Financial Solutions, RGA, commented, “RGA has a long-standing partnership with Daido Life and its parent company T&D Holdings, and we are pleased to once again work with them to craft a solution to reduce risk and manage capital.”

“This is one of a number of recent asset-intensive transactions that RGA has completed in the Japanese market, and we look forward to continuing to support our clients with their in-force capital management and new business objectives.”

Daido Life added, “Our working relationship with RGA spans many years and multiple transactions. Their understanding of our needs and ability to customize coinsurance agreements that help us to effectively manage asset and liability risks have enabled us to improve our capital efficiency.”

Additional terms of the transaction are not being disclosed at this time.

AmericanAg - Global Reinsurance Solutions

In its full year financial results, RGA reported that net income totalled $623 million, compared with $617 million in 2021.

The firm’s adjusted operating income for the full year totalled $977 million, compared with $77 million the year before.

Net premiums for the full year totalled $13.1 billion, increasing 4.5% in 2022.

RGA noted that full-year premiums reflected an adverse foreign currency effect of $490 million. Excluding this net foreign currency effect, consolidated net premiums increased by 8.4% for the full year.

At the time, Anna Manning, Chief Executive Officer, said, “It was a very successful year for RGA, and I view our fourth quarter performance as solid with many segments reporting strong results.

“Based on favourable business conditions and RGA’s global leadership position, we are optimistic about the future and expect to continue to deliver attractive financial results over time.”

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