RGA International Reinsurance Company, a subsidiary of Reinsurance Group of America, has signed £1bn longevity reinsurance deal with Royal London, a mutual life and pensions company in the UK.
As per terms of the agreement, RGA will reinsure a block of pensions business comprising approximately 70,000 policies underwritten by Royal London’s CIS subsidiary, thereby decreasing asset and longevity risks for Royal London.
Reinsurance Group of America global financial solutions executive vice president John Laughlin said: "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."
"Longevity risks for managers of pension funds and annuities are growing as life spans continue to increase worldwide.
"RGA’s solutions play an important role in ensuring certainty for our clients," Laughlin added.
RGA International Reinsurance Company UK branch office managing director Simon Wainwright, commented: "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."
RGA, a global life reinsurance company, offers individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, facultative underwriting and product development.