Aegon may leverage reinsurance to dampen volatility in US life book

Aegon may approach reinsurers to help it handle additional volatility in its US life insurance business stemming from an increase in claim size, company officials indicated during its third quarter earnings teleconference with investors today (Thursday, November 11).

“We want to reduce volatility in the mortality experience and we are exploring management options,” chief financial officer Matt Rider (pictured) told analysts.

COVID-19 deaths, when added to the surplus in respiratory-related deaths not directly related to COVID-19, accounted for some one half of €93 million adverse mortality claims in US Life, Rider said.

Rising claim size accounted for about a quarter while increased frequency, largely matching wider trends visible throughout the industry, accounted for the remainder, Rider indicated.

“We will take some steps here, typically done through reinsurance, to reduce the amount of claims volatility in terms of claim size,” Rider said.

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