Life and health reinsurer Reinsurance Group of America (RGA) announced an agreement with Tongyang Life Insurance Company, Ltd. to expand coverage under an existing coinsurance contract.
The agreement, originally executed in June, will now include an additional KRW150 billion in coverage.
Gaston Nossiter, senior vice president, head of Asia Pacific, Global Financial Solutions at RGA, noted that the expansion strengthens the partnership with Tongyang Life.
“This milestone transaction underscores our commitment to delivering customized asset-intensive solutions that address the unique financial objectives and customer needs of insurers in the Asia-Pacific region. By leveraging our extensive local market knowledge combined with global best practices, we can support Tongyang Life’s long-term goals within the current economic and regulatory landscape,” he said.
Moon-Koo Lee, CEO of Tongyang Life, also remarked that the expanded agreement enables the company to address growing capital management requirements for insurers.
“Through our strong partnership with RGA, we can continue to implement advanced capital management measures to protect policyholders in the future.”
RGA has been a pioneer in using reinsurance for financial management and portfolio optimization, completing its first asset-intensive transaction in Asia in 1996. The company has since executed several coinsurance transactions across the Asia-Pacific region, offering long-term value to clients and policyholders.
Earlier this year, the reinsurer also announced an agreement with American National Insurance Company and its affiliates to reinsure a diversified block of life insurance business through a coinsurance arrangement.
Under the terms of the agreement, approximately $3.5 billion of American National’s statutory reserves will be transferred to RGA’s subsidiaries. American National will continue to provide policyholder service and support.
In August, the group also reported a net income of $203 million, or $3.03 per diluted share, for the second quarter.
This is a slight decrease from $205 million, or $3.05 per diluted share, in the same quarter last year. The company's adjusted operating income for the quarter reached $365 million, or $5.48 per diluted share, compared to $297 million, or $4.40 per diluted share, in the previous year.
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