RGA Announces Reinsurance Transaction with Equitable Holdings
Reinsurance Group of America (RGA) has announced a significant reinsurance agreement with Equitable Holdings to reinsure a diversified block of life insurance products. RGA will reinsure 75% of Equitable's in-force life insurance liabilities, comprising $18 billion in general account reserves and $14 billion in separate account reserves, totaling $32 billion.
The transaction requires $1.5 billion of capital deployment at closing and is expected to generate approximately $70 million in adjusted operating income before taxes in 2025, increasing to $160-$170 million in 2026, and reaching approximately $200 million annually over time. RGA plans to finance the transaction using excess capital and potential debt financing.
The deal is anticipated to close in mid-2025, subject to regulatory approvals. Equitable will continue handling policyholder administration and support. The partnership expands across underwriting, product development, distribution, and investment management.
Reinsurance Group of America (RGA) ha annunciato un'importante accordo di riassicurazione con Equitable Holdings per riassicurare un portafoglio diversificato di prodotti assicurativi sulla vita. RGA riassicurerà il 75% delle passività assicurative sulla vita in essere di Equitable, che comprendono 18 miliardi di dollari in riserve del conto generale e 14 miliardi di dollari in riserve del conto separato, per un totale di 32 miliardi di dollari.
La transazione richiede un impiego di capitale di 1,5 miliardi di dollari al momento della chiusura ed è prevista per generare circa 70 milioni di dollari di reddito operativo rettificato prima delle tasse nel 2025, aumentando a 160-170 milioni di dollari nel 2026 e raggiungendo circa 200 milioni di dollari all'anno nel tempo. RGA prevede di finanziare la transazione utilizzando capitale in eccesso e potenziale finanziamento tramite debito.
Si prevede che l'accordo si chiuda a metà del 2025, soggetto ad approvazioni regolatorie. Equitable continuerà a gestire l'amministrazione dei polizze e il supporto. La partnership si espande in ambito di sottoscrizione, sviluppo di prodotti, distribuzione e gestione degli investimenti.
Reinsurance Group of America (RGA) ha anunciado un importante acuerdo de reaseguro con Equitable Holdings para reasegurar un bloque diversificado de productos de seguros de vida. RGA reasegurará el 75% de las obligaciones de seguros de vida vigentes de Equitable, que comprenden 18 mil millones de dólares en reservas de cuenta general y 14 mil millones de dólares en reservas de cuenta separada, sumando un total de 32 mil millones de dólares.
La transacción requiere un despliegue de capital de 1.5 mil millones de dólares al cierre y se espera que genere aproximadamente 70 millones de dólares en ingresos operativos ajustados antes de impuestos en 2025, aumentando a 160-170 millones de dólares en 2026 y alcanzando aproximadamente 200 millones de dólares anuales con el tiempo. RGA planea financiar la transacción utilizando capital excedente y posible financiamiento de deuda.
Se anticipa que el acuerdo se cierre a mediados de 2025, sujeto a aprobaciones regulatorias. Equitable continuará manejando la administración de los asegurados y el soporte. La asociación se expande a través de suscripción, desarrollo de productos, distribución y gestión de inversiones.
Reinsurance Group of America (RGA)는 Equitable Holdings와 다양한 생명보험 상품 블록을 재보험하기 위한 중요한 재보험 계약을 발표했습니다. RGA는 Equitable의 기존 생명보험 책임의 75%를 재보험하며, 여기에는 180억 달러의 일반계좌 준비금과 140억 달러의 별도계좌 준비금이 포함되어 총 320억 달러에 달합니다.
이번 거래는 15억 달러의 자본 배치가 필요하며, 2025년에는 세전 조정 운영 소득으로 약 7천만 달러를 생성할 것으로 예상되며, 2026년에는 1억 6천만에서 1억 7천만 달러로 증가하고, 시간이 지남에 따라 연간 약 2억 달러에 이를 것으로 보입니다. RGA는 초과 자본과 잠재적인 부채 자금을 이용하여 거래를 자금을 조달할 계획입니다.
이 거래는 2025년 중반에 마감될 것으로 예상되며, 규제 승인을 받아야 합니다. Equitable은 계속해서 보험 계약자 관리 및 지원을 담당합니다. 이 파트너십은 언더라이팅, 제품 개발, 유통 및 투자 관리 분야로 확대됩니다.
Reinsurance Group of America (RGA) a annoncé un accord de réassurance significatif avec Equitable Holdings pour réassurer un portefeuille diversifié de produits d'assurance vie. RGA réassurera 75% des passifs d'assurance vie en vigueur d'Equitable, comprenant 18 milliards de dollars en réserves de compte général et 14 milliards de dollars en réserves de compte séparé, totalisant 32 milliards de dollars.
La transaction nécessite un déploiement de capital de 1,5 milliard de dollars à la clôture et devrait générer environ 70 millions de dollars de revenu d'exploitation ajusté avant impôts en 2025, augmentant à 160-170 millions de dollars en 2026, et atteignant environ 200 millions de dollars par an au fil du temps. RGA prévoit de financer la transaction en utilisant un capital excédentaire et un éventuel financement par emprunt.
L'accord devrait être finalisé à la mi-2025, sous réserve des approbations réglementaires. Equitable continuera à gérer l'administration des assurés et le support. Le partenariat s'étend à la souscription, au développement de produits, à la distribution et à la gestion des investissements.
Reinsurance Group of America (RGA) hat eine bedeutende Rückversicherungsvereinbarung mit Equitable Holdings bekannt gegeben, um einen diversifizierten Block von Lebensversicherungsprodukten rückzuversichern. RGA wird 75% der bestehenden Lebensversicherungsverpflichtungen von Equitable rückversichern, die 18 Milliarden Dollar in allgemeinen Rücklagen und 14 Milliarden Dollar in separaten Rücklagen umfassen, insgesamt also 32 Milliarden Dollar.
Die Transaktion erfordert ein Kapitalengagement von 1,5 Milliarden Dollar bei Abschluss und wird voraussichtlich etwa 70 Millionen Dollar an bereinigtem Betriebsergebnis vor Steuern im Jahr 2025 generieren, das auf 160 bis 170 Millionen Dollar im Jahr 2026 ansteigt und im Laufe der Zeit etwa 200 Millionen Dollar jährlich erreicht. RGA plant, die Transaktion mit überschüssigem Kapital und möglicher Fremdfinanzierung zu finanzieren.
Der Deal wird voraussichtlich Mitte 2025 abgeschlossen, vorbehaltlich der regulatorischen Genehmigungen. Equitable wird weiterhin die Verwaltung der Policeninhaber und die Unterstützung übernehmen. Die Partnerschaft erstreckt sich über Underwriting, Produktentwicklung, Vertrieb und Investmentmanagement.
- Large-scale transaction covering $32 billion in life insurance products
- Expected to generate $70M in adjusted operating income before taxes in 2025
- Projected earnings growth to $160-170M in 2026, reaching $200M annually
- Expands strategic partnership with Equitable across multiple business areas
- Requires substantial capital deployment of $1.5 billion
- Potential increase in debt levels due to planned financing
- Long wait until closing (mid-2025)
- Subject to regulatory approval risks
Insights
This landmark reinsurance transaction marks a strategic evolution for RGA, significantly expanding their market presence while demonstrating sophisticated risk management capabilities. The
The financial architecture of the deal is particularly noteworthy. The expected earnings progression - from
The transaction's structure, with RGA taking a 75% quota share while Equitable maintains policyholder administration, creates an efficient operating model that leverages each partner's core strengths. This arrangement optimizes capital deployment while maintaining service continuity for policyholders.
The financing strategy, combining excess capital with potential debt issuance, indicates careful balance sheet management. This approach preserves financial flexibility for future opportunities while maintaining optimal capital structure. The expected returns falling within RGA's target range suggest disciplined pricing in an increasingly competitive market environment.
The expansion of the strategic partnership beyond pure risk transfer into underwriting, product development, and distribution channels positions RGA to capture additional value streams and strengthen its market position. This multi-faceted collaboration model could become a template for future large-scale reinsurance transactions in the industry.
-
RGA to reinsure
$32 billion -
RGA expects to deploy
$1.5 billion - Priced with attractive returns within RGA’s target range
- Expected to meaningfully contribute to adjusted operating EPS
- Broadens RGA’s relationship with Equitable across underwriting, product development, distribution, and investment management
“We are very excited about the partnership we have created with Equitable,” said Ron Herrmann, Executive Vice President, Head of the
RGA’s legacy of diligent risk management and world-class underwriting and biometric expertise has positioned the company to deliver sophisticated risk solutions. The transaction is well aligned to RGA’s existing asset and liability enterprise risk profile.
“Our strong financial position enables us to capitalize on this opportunity with Equitable, and the transaction is expected to meaningfully contribute to RGA’s earnings per share, with anticipated attractive returns on capital,” said Axel André, Executive Vice President, Chief Financial Officer, RGA. “We anticipate raising capital in connection with this transaction through the issuance of long-term debt, and we expect to continue to be in a position to execute on other attractive opportunities in our pipeline, while maintaining prudent capital management.”
Key Transaction Details
RGA is reinsuring
RGA expects this transaction to contribute approximately
RGA expects to finance the transaction using excess capital, and, subject to market conditions and other factors, proceeds from a potential debt financing.
Equitable will continue to provide direct policyholder administration and support.
The transaction is expected to close in mid-2025, subject to customary closing conditions including regulatory approvals.
Goldman, Sachs & Co. LLC served as financial advisor to RGA, and Clifford Chance US LLP served as legal counsel in the transaction.
Conference Call Information
RGA will host a conference call to discuss the transaction beginning at 9 a.m. Eastern Time on Monday, February 24. Interested parties may access the call by dialing 1-844-481-2753 (412-317-0669 international) and asking to be joined into the Reinsurance Group of America, Incorporated (RGA) call. Participants are asked to call the assigned number approximately 15 minutes before the conference call begins. A live audio webcast of the conference call will be available on the Investors page of RGA’s website, www.rgare.com. A replay of the conference call will be available at the same address for 90 days following the conference call.
Reinsurance Transaction Presentation
The presentation to be used during the conference call will be available on the “Investors” page of RGA’s website, www.rgare.com.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus – all directed toward creating sustainable long-term value. RGA has approximately
Non-GAAP Financial Measures
RGA is unable to provide a reconciliation of the expected impact of the reinsurance transaction on adjusted operating income before taxes in 2025 and in future years, a forward-looking non-GAAP financial measure, due to, among other things, that these expectations are a composite of RGA’s goals for future results, the inherent difficulty in forecasting generally, and the difficulty of quantifying accurate forecasts of the numerous components comprising these calculations that would be necessary to provide any such reconciliations. These expectations are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of RGA, and are based upon various assumptions, which are subject to change. Actual results will vary, and those variations may be material. For a discussion of some of the important factors that could cause these variations, please review the risk factors set forth in “Risk Factors” in Part I, Item 1A of RGA’s Annual Report on Form 10-K for the year ended December 31, 2024. Nothing in this press release should be regarded as a representation by any person that these expectations will be achieved, and RGA undertakes no duty to update any such expectations.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security of RGA, nor shall there be any sale any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to expectations with respect to the anticipated financial impact of the reinsurance transaction, as well as statements related to the anticipated financing of the reinsurance transaction. Forward-looking statements often contain words and phrases such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “pro forma,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. Forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Forward-looking statements are not a guarantee of future performance and are subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results, performance, and achievements could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.
Factors that could also cause results or events to differ, possibly materially, from those expressed or implied by forward-looking statements, include, among others: (1) adverse changes in mortality (whether related to COVID-19 or otherwise), morbidity, lapsation, or claims experience, (2) inadequate risk analysis and underwriting, (3) adverse capital and credit market conditions and their impact on the Company’s liquidity, access to capital, and cost of capital, (4) changes in the Company’s financial strength and credit ratings and the effect of such changes on the Company’s future results of operations and financial condition, (5) the availability and cost of collateral necessary for regulatory reserves and capital, (6) requirements to post collateral or make payments due to declines in the market value of assets subject to the Company’s collateral arrangements, (7) action by regulators who have authority over the Company’s reinsurance operations in the jurisdictions in which it operates, (8) the effect of the Company parent’s status as an insurance holding company and regulatory restrictions on its ability to pay principal of and interest on its debt obligations, (9) general economic conditions or a prolonged economic downturn affecting the demand for insurance and reinsurance in the Company’s current and planned markets, (10) the impairment of other financial institutions and its effect on the Company’s business, (11) fluctuations in
Forward-looking statements should be evaluated together with the many risks and uncertainties that affect the Company’s business, including those mentioned in this press release and described in the Company’s filings with the SEC. These forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update these forward-looking statements, even though the Company’s situation may change in the future, except as required under applicable securities law. For a discussion of the risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements, you are advised to see “Risk Factors” in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in our other periodic and current reports filed with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224564600/en/
FOR MORE INFORMATION:
Jeff Hopson
Senior Vice President, Investor Relations
636-736-2068
jhopson@rgare.com
Lynn Phillips
Vice President, Corporate Communications
636-736-2351
lphillips@rgare.com
Lizzie Curry
Executive Director, Public Relations
636-736-8521
lizzie.curry@rgare.com
Source: Reinsurance Group of America, Incorporated
FAQ
What is the size of RGA's reinsurance transaction with Equitable Holdings?
How much capital will RGA deploy for the Equitable reinsurance deal?
What are the expected earnings from RGA's Equitable reinsurance transaction?
When will RGA's reinsurance transaction with Equitable close?
What percentage of Equitable's life insurance liabilities will RGA reinsure?
