RGA to reinsure Zurich unit's $2.3bn annuity book

Zurich Insurance Group's subsidiary Farmers New World Life has signed an agreement with Reinsurance Group of America (RGA) to reinsure a portion of its closed US annuity book, representing reserves of roughly $2.3 billion.

The company stated that the transaction reflects Zurich management's continued efforts to reduce tail risk, make better use of capital and enhance the overall profitability of the group.

"The transaction with Reinsurance Group of America is another example of how the group actively manages its capital and sharpens its business profile," said George Quinn, group chief financial officer of Zurich.

"This transaction reduces risk and continues the process of simplifying the group and releasing capital from non-core activities as communicated at the time of our investor day in 2016."