Reinsurance Group of America (RGA) said it has entered into an asset-intensive reinsurance agreement with Allianz Suisse Versicherungs-Gesellschaft covering market and insurance risks tied to US$350 million of Swiss disability annuity liabilities.
RGA described the structure as the first of its kind in Switzerland. Allianz Suisse said the arrangement is intended to strengthen its capital position.
“This landmark structure demonstrates RGA’s firm commitment to pioneering innovative reinsurance solutions. As leaders in capital-motivated reinsurance and longevity risk management, we are excited to continue delivering sophisticated, asset-intensive solutions that strengthen our clients’ financial positions across Continental Europe,” said Cormac Galvin (pictured above), senior vice president and managing director for Europe at RGA.
The transaction was executed on July 19. Other terms were not disclosed.
RGA recently agreed to reinsure US$32 billion of life insurance liabilities for Equitable, including US$18 billion in general account reserves and US$14 billion in separate account reserves. The company said it expects to deploy about US$1.5 billion of capital at closing, with projected adjusted operating income contributions of roughly US$70 million in 2025 on a mid-year close, US$160-US$170 million in 2026, and approximately $200 million annually thereafter.
In Continental Europe, RGA completed an asset‑intensive reinsurance transaction with Baloise Belgium that included about 57,000 individual life policies with guaranteed minimum returns and total reserves near €900 million.
Allianz has also expanded its reinsurance footprint with Sconset Re in Bermuda, a platform established to reinsure a US$4 billion block of annuity liabilities and forward‑flow between US$5 billion and US$10 billion of new business. Most assets will be managed by PIMCO, with additional asset managers and equity investors participating, illustrating the group’s use of alternative capital and asset management tie‑ins for long‑duration liabilities.
Allianz Suisse also previously executed a reinsurance transaction with Resolution Re that transferred an 80% quota share of a closed book of traditional individual life business totaling CHF4 billion of liabilities.
That Swiss‑to‑Bermuda legacy transaction covered market and insurance risks and left servicing with Allianz Suisse, providing a reference point for the company’s balance sheet actions in Switzerland.
What are your thoughts on this story? Please feel free to share your comments below.
