Reinsurance Group of America (RGA) announced it has entered into an agreement with Dai-ichi Life Insurance Company, Limited (Dai-ichi) for an RGA subsidiary to reinsure ¥150 billion of statutory reserves through coinsurance.
This transaction follows a history of previous agreements between RGA and Dai-ichi Life. In 2021, RGA reinsured ¥200 billion of statutory reserves from Dai-ichi under a coinsurance arrangement, marking a significant milestone in the partnership.
The prior transaction helped lay the groundwork for continued collaboration, with both companies emphasizing a strategy focused on capital efficiency and long-term financial strength.
RGA has been active in developing asset-intensive reinsurance solutions as financial optimization tools. The company completed its first such transaction in Asia in 1996 and has since implemented multiple coinsurance agreements across the Asia-Pacific region, serving insurers in a variety of markets.
Gaston Nossiter (pictured above), senior vice president, Japan; Asia Pacific Financial Solutions, RGA, said the agreement builds on the companies’ collaboration since 2020.
“This agreement reinforces RGA’s commitment to providing leading reinsurance solutions in the Asian insurance market, empowering insurers with creative and tailored offerings that optimize capital and enhance risk management capabilities,” Nossiter said.
Over the years, RGA has executed asset-intensive transactions across multiple currencies, including Japanese yen, Hong Kong dollars, Australian dollars, and US dollars.
The Asia-Pacific region has become a significant area of focus for RGA’s broader strategy. In 2024, RGA’s Asia-Pacific operations generated adjusted operating income before taxes of US$537 million, marking a record performance.
The agreement between RGA and Dai-ichi Life is also consistent with broader trends among Japanese insurers seeking to enhance capital efficiency and expand their international presence.
Dai-ichi Life has recently pursued other global initiatives, including a plan to acquire a 15% stake in UK-based asset manager M&G, with a target of generating US$6 billion in new business flows over the next five years.
As of Dec. 31, 2024, RGA reported assets of US$118.7 billion and approximately US$3.9 trillion of life reinsurance in force. The company maintains a diversified business model, offering life reinsurance, living benefits reinsurance, group reinsurance, health reinsurance, financial solutions, and product development services to clients worldwide.
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