Equitable Holdings has entered into an agreement with Reinsurance Group of America (RGA) to reinsure a diversified block of life insurance products and expand their strategic partnership.
RGA is to reinsure $32bn of a diversified mix of life insurance products and expects to deploy $1.5bn of capital into the transaction at closing.
“We are very excited about the partnership we have created with Equitable,” said Ron Herrmann, Executive Vice President, Head of the Americas, RGA.
“This transaction affirms our ability to execute on large in-force opportunities and demonstrates RGA’s unique ability to support clients’ new business efforts with product underwriting and biometric expertise. This partnership is an example of our capacity to provide creative solutions and technical expertise that support both sides of the balance sheet, and it is a prime example of how the execution of our Creation Re strategy can address our clients’ current and future needs.”
“Our strong financial position enables us to capitalize on this opportunity with Equitable, and the transaction is expected to meaningfully contribute to RGA’s earnings per share, with anticipated attractive returns on capital,” added Axel André, Executive Vice President, Chief Financial Officer, RGA.
“We anticipate raising capital in connection with this transaction through the issuance of long-term debt, and we expect to continue to be in a position to execute on other attractive opportunities in our pipeline, while maintaining prudent capital management.”