RGA Announces Reinsurance Transaction with Equitable Subsidiaries

Reinsurance Group of America, Incorporated (NYSE: RGA) disclosed on February 24, 2025, that its subsidiary, RGA Reinsurance Company (RGA Re), has entered into a Master Transaction Agreement with subsidiaries of Equitable Holdings, Inc. Under the terms of the agreement, RGA Re will enter into coinsurance and modified coinsurance arrangements in a transaction to reinsure a 75% quota share of the Counterparty’s in-force individual life insurance liabilities. The proposed reinsurance transaction encompasses a diversified block of life insurance products with liabilities totaling approximately $32 billion and is anticipated to close in mid-2025, subject to customary closing conditions and required regulatory approvals.

According to the disclosure filed on Form 8-K with the Securities and Exchange Commission, the transaction is designed to align with RGA’s risk appetite while leveraging the Company’s biometric expertise. In connection with the transaction, RGA is expected to deploy approximately $1.5 billion of capital, and there is potential capacity for deploying an additional $0.8 billion into further transactions during 2025 subject to market conditions and the outcome of potential debt financing.

The filing also noted that, based on preliminary outcomes of anticipated asset repositioning over the following 12 months, the reinsurance transaction is projected to generate attractive financial outcomes. RGA’s management anticipates an approximate adjusted operating income before tax of $70 million in 2025, increasing to between $160 million and $170 million in 2026, and subsequently stabilizing at about $200 million annually post-asset repositioning.

A conference call to discuss the transaction is scheduled for February 24, 2025, at 9:00 a.m. Eastern Time. Additional details, along with related slide presentations, have been made available on RGA’s investor website.

The SEC filing includes extensive forward-looking statements, cautioning that actual results may differ materially due to various risks and uncertainties, including changes in economic conditions, regulatory approvals, and market dynamics. RGA emphasized that all forward-looking information is subject to change and should be considered in light of the risk factors detailed in its SEC filings.

This transaction further solidifies RGA’s strategy to optimize its risk-return profile through its global reinsurance and asset management capabilities while maintaining strong capital ratios and financial strength as reflected in its existing credit ratings.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Reinsurance Group of America’s 8K filing here.

Reinsurance Group of America Company Profile

Reinsurance Group of America, Incorporated engages in reinsurance business. The company offers individual and group life and health insurance products, such as term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products; asset-intensive and financial reinsurance products; and other capital motivated solutions.