matt-rider-ceo-aegon-1
11 November 2021Insurance

Aegon may leverage reinsurance to dampen volatility in US life book

Aegon may approach reinsurers to help it handle additional volatility in its US life insurance business stemming from an increase in claim size, company officials indicated during its third quarter earnings teleconference with investors today (Thursday, November 11).

“We want to reduce volatility in the mortality experience and we are exploring management options,” chief financial officer Matt Rider (pictured) told analysts.

COVID-19 deaths, when added to the surplus in respiratory-related deaths not directly related to COVID-19, accounted for some one half of €93 million adverse mortality claims in US Life, Rider said.

Rising claim size accounted for about a quarter while increased frequency, largely matching wider trends visible throughout the industry, accounted for the remainder, Rider indicated.

“We will take some steps here, typically done through reinsurance, to reduce the amount of claims volatility in terms of claim size,” Rider said.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
15 December 2021   The action aims to improve its risk profile and increase capital generation.
Insurance
11 March 2021   Mark Mullin is to become the new chairman of Transamerica after serving as president and CEO for 11 years.
Insurance
1 March 2021   The insurer wants to allocate capital to businesses with potential for an attractive return.