RGA Partners with Sun Life in Longevity Insurance Transaction
MONTRÉAL, March 3, 2015 – RGA Life Reinsurance Company of Canada (“RGA Canada”), a subsidiary of Reinsurance Group of America, Incorporated (“RGA”), today announced the completion of an agreement under which RGA Canada will participate in a syndicated reinsurance transaction, led by Sun Life Assurance Company of Canada (“Sun Life”), to reinsure only the longevity risks associated with pension obligations held by BCE Inc. (“BCE”), Canada's largest communications company and a leading Canadian pension plan sponsor.Under the transaction, RGA will reinsure the longevity risks associated with a significant share of a C$5 billion block of pension obligations, ultimately reducing longevity risks for BCE.
“We are very pleased to announce RGA’s participation in this transaction, the first of its kind in North America,” said Alka Gautam, President and Chief Executive Officer, RGA Canada. “We have delivered an important longevity risk management solution for Sun Life and for BCE, uniting the pension, insurance and reinsurance worlds.”
“RGA’s expertise in longevity risk played a critical role in securing an innovative, sophisticated risk management solution for Sun Life,” said John Laughlin, Executive Vice President, Global Financial Solutions, RGA. “Longevity risk has significant material financial implications, and RGA’s solutions play an important role in ensuring certainty for our clients.”
Reinsurance Group of America, Incorporated (NYSE: RGA), one of the largest global life reinsurance companies in the world, provides clients with individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, facultative underwriting and product development. The company serves clients from operations in Australia, Barbados, Bermuda, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, Turkey, the United Arab Emirates, the United Kingdom, and the United States. Worldwide, RGA has approximately US$2.9 trillion of life reinsurance in force and assets of US$44.7 billion.