RGA in retrocession deal with Pacific Life

Reinsurance Group of America has completed a deal which will see its primary US operating company, RGA Reinsurance, retrocede a block of US individual life business to Pacific Life.

The block of business to be retroceded is comprised of term and permanent individual life policies written by US insurers and assumed by RGA primarily between 1999 and 2004. The reinsurer will retrocede approximately $200 billion of in-force individual life reinsured amount at risk.

“We are pleased to have been able to work with Pacific Life, a long-standing trusted partner, to find an opportunity that provides them with additional mortality risk and also allows us to release capital that can be deployed into other opportunities. This transaction highlights the attractiveness of mortality blocks to entities with complementary risk profiles,” said Anna Manning, senior executive vice president, global structured solutions, RGA.

Greig Woodring, president and chief executive officer, said: "This is a meaningful event for RGA and it demonstrates our commitment to manage capital efficiently and effectively. As part of our broader capital management plans, we expect that the capital freed up from this transaction can be redeployed to achieve a higher return over time. We continue to see good organic growth opportunities, and have selectively used excess capital for in-force blocks, including two recently announced transactions in the US life and annuity sector.”