RGA reinsures nearly $3bn Horace Mann annuity business block
Reinsurance Group of America (RGA) has completed a $2.9 billion annuity reinsurance transaction with Horace Mann Life Insurance Company, effective April 1, 2019.
Under the agreement, a subsidiary of RGA will reinsure a block of US annuity business and Horace Mann will continue to service and administer the policies.
The block of policy liabilities relates to legacy US individual annuities written in 2002 or earlier. It includes $2.2 billion of fixed annuities that represented approximately 50 percent of Horace Mann’s fixed annuity assets under management at March 31, 2019, and $700 million of variable annuities.
Horace Mann will continue to service and administer approximately 54,000 policies that are being reinsured.
“We are pleased to expand the strong partnership with Horace Mann and to advance RGA’s overarching long-term strategy to grow our asset-intensive business,” said John Laughlin, executive vice president, global financial solutions, RGA. “This transaction is another solid example of RGA’s dedication to working with clients to meet their capital and risk management objectives.”
According to Horace Mann president and CEO Marita Zuraitis: “Reinsuring our legacy annuity business is a win-win for our shareholders and our policyholders. We will continue to service and administer the reinsured annuity policies, so our educators will be able to rely on the customer experience they have always known. And for Horace Mann, the reinsurance agreement reduces our exposure to interest rate fluctuations, releases capital that can be redeployed to provide more solutions for educators and increases long-term earnings for our shareholders."
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Munich Re partners with GIC to help insurers recover quickly after major catastrophes
Willis Towers Watson rethinks middle market clients strategy
Major global broker expands into Central and Eastern Europe with stake purchase
Price Forbes launches new security risks practice with three major hires
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
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
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze