LONDON, UNITED KINGDOM--(Marketwired - May 14, 2014) - RGA International Reinsurance Company Limited, a subsidiary of Reinsurance Group of America, Incorporated (NYSE: RGA) ("RGA"), and Royal London Mutual Insurance Society Limited ("Royal London") today announced a transaction under which RGA is reinsuring a block of pensions business underwritten by Royal London's CIS subsidiary.
Under the transaction, RGA will reinsure a £1 billion block of annuities comprising approximately 70,000 policies, reducing asset and longevity risks for Royal London.
"We are very pleased to support Royal London through this transaction. The transaction takes advantage of the significant longevity and investment expertise we have developed in the U.K. and Continental Europe, and provides scale for further expansion of these capabilities," said John Laughlin, Executive Vice President, Global Financial Solutions, Reinsurance Group of America, Incorporated.
"Longevity risks for managers of pension funds and annuities are growing as life spans continue to increase worldwide," Laughlin added. "RGA's solutions play an important role in ensuring certainty for our clients."
Simon Wainwright, Managing Director, RGA International Reinsurance Company Limited, U.K. Branch Office, said, "This transaction provides the opportunity to leverage RGA U.K.'s longevity expertise into new areas. In addition, it strengthens and solidifies our position in Europe as we move to Solvency II."
Reinsurance Group of America, Incorporated (NYSE: RGA), one of the largest global life reinsurance companies in the world, provides clients with individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, facultative underwriting and product development. The company serves clients from operations in Australia, Barbados, Bermuda, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, Turkey, the United Arab Emirates, the United Kingdom and the United States. Worldwide, RGA has approximately $3.0 trillion of life reinsurance in force and assets of $40.5 billion.