RGA completes $300m life securitisation

Chesterfield Financial Holdings, a subsidiary of Reinsurance Group of America (RGA), has completed a substantial securitisation of US life insurance embedded value policies.

The $300 million transaction covers a closed block of policies assumed by RGA Reinsurance Company, a wholly owned indirect subsidiary of RGA, between 2006 and 2010. RGA said it expects to use the net proceeds from the offering for general corporate purposes.

Jack Lay, chief financial officer of RGA, said: “We are continually looking for ways to enhance our capital flexibility and efficiency, and this transaction is an attractive option in that regard. In addition, the transaction highlights and monetizes a portion of the embedded value that exists within our broad portfolio of mortality risk. The proceeds will be incorporated into our ongoing capital management plans.”

Credit Agricole Securities was the structuring lead and sole book runner on the transaction.