To be structured as an indemnity co-insurance agreement and is expected to be effective January 1, 2010, subject to regulatory approvals
Reinsurance Group of America has announced an agreement with ReliaStar Life Insurance Company, a subsidiary of ING Groep N.V., whereby RGA has acquired ReliaStar’s US and Canadian group life, accident and health reinsurance business.
The acquisition will be structured as an indemnity co-insurance agreement and is expected to be effective January 1, 2010, subject to regulatory approvals. RGA will fund the acquisition with existing capital.
Greig Woodring, president and chief executive officer of RGA, said: “We are pleased with this acquisition as it gives us a far more substantial presence in the North American group reinsurance market and offers a highly regarded team in Minneapolis that will remain in place. We look forward to working with ReliaStar’s clients and its distribution partners during the upcoming renewal season. We expect to deploy approximately $115 million of capital to support the business with returns in the mid-to-upper teens.”
RGA, through its various operating subsidiaries, is a provider of life reinsurance.