RGA completes $32bn reinsurance transaction with Equitable

Reinsurance Group of America (RGA) , covering a diversified portfolio of life insurance products.

Back when the deal was first revealed, RGA said it is reinsuring 75% of Equitable’s in-force life insurance liabilities, which includes approximately $18 billion of general account reserves and $14 billion of separate account reserves.

RGA noted that it expects to deploy $1.5 billion of capital at closing into this reinsurance transaction, based on the expected required capital to support the block.

RGA has now stated that the deal is priced to deliver attractive returns within its target range and is expected to meaningfully contribute to adjusted operating EPS.

The transaction also expands RGA’s partnership with Equitable across underwriting, product development, distribution, and investment management.

Tony Cheng, President and Chief Executive Officer, RGA, commented, “The successful closing of our transaction with Equitable represents a significant milestone for RGA and reflects our ongoing commitment to delivering exceptional value for our shareholders and clients.

“We view this highly strategic transaction as a great example of how RGA can partner with our clients to execute mutually beneficial deals that enable growth and yield long-term value.

“Beyond enhancing our market position, this transaction demonstrates our ability to execute strategic initiatives that align with our Creation Re strategy.”