Reinsurance Group of America seals $1.7bn longevity reinsurance deal

Reinsurance Group of America, Incorporated (RGA) has completed a $1.7 billion longevity swap transaction with a US insurer.

The longevity reinsurance transaction with Cincinnati-based Western & Southern Financial Group, a diversified family of financial services businesses and life insurance group, covers approximately 11,000 single premium immediate annuity contracts.

“As demand for longevity risk management tools increases across the US, RGA is eager to work with clients to develop solutions that meet their specific needs,” said David Lipovics, vice president, US Pension Risk Solutions, RGA. “We credit our strong relationship with Western & Southern, as well as the dedicated teams from both companies, who collaborated exceptionally well to design, structure, and effectively complete this transaction.”

Jacob Steuber, vice president, actuarial analysis, Western & Southern, added: “Our relationship with RGA is a valuable part of our overall risk management strategy, making them an ideal partner for this transaction. RGA was able to customise a solution that helps us maintain a desirable risk profile while continuing to offer competitive retirement solutions, and their support through this transaction and continued partnership into the future are greatly appreciated.”

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