National Western completes annuity reinsurance deal with Prosperity Life

National Western Life Insurance Company, a subsidiary of National Western Life Group, has executed an annuity reinsurance transaction with Prosperity Life Assurance, a Bermuda based reinsurer rated A- (Excellent) by AM Best.

The company said the deal represents a strategic move to expand financial flexibility and provide opportunity for incremental earnings.

It entered into an annuity reinsurance agreement with Prosperity, an emerging provider of customized and innovative reinsurance solutions to the life insurance and annuity industry, in a transaction encompassing approximately $1.7 billion in fixed annuity reserves.

With this agreement, NWLIC expects to improve its overall financial performance and risk-based capital (RBC) ratios.

"By reinsuring older fixed annuity business, we anticipate improving our already strong capital position and RBC ratio as well as increasing our financial flexibility," said Ross Moody, chairman of the Board and CEO.

National Western Life Insurance Company will continue to administer and service the policies included in the transaction.