Reinsurance Group of America Agrees to Purchase Hodge Life Assurance Company Limited

Rhea-AI Summary

Reinsurance Group of America (RGA) has announced its agreement to acquire 100% of Hodge Life Assurance Company Limited (HLAC), which holds annuity liabilities of approximately £570 million ($780 million USD). This acquisition highlights RGA's commitment to the U.K. market and aims to enhance its capital and risk management solutions. HLAC will cease writing new business by February 19, 2021, with a seamless transition planned for existing customers. The completion of the acquisition is contingent upon regulatory approval.

Positive

• Acquisition of HLAC strengthens RGA's presence in the U.K. market.
• HLAC has significant annuity liabilities of £570 million ($780 million USD), enhancing RGA's portfolio.
• RGA expresses confidence in providing a stable environment for HLAC's policyholders.

Negative

• None.

Reinsurance Group of America, Incorporated (NYSE: RGA) a leading global life and health reinsurer, today announced that it has agreed to acquire 100% of the share capital of Hodge Life Assurance Company Limited (HLAC), the PRA authorized life insurance company of Hodge Limited. HLAC has annuity liabilities of approximately £570 million ($780 million U.S.).

“The purchase of HLAC demonstrates RGA’s continued strong support of the U.K. market and our commitment to working with our clients around the world to provide capital and risk-management solutions,” said Larry Carson, Executive Vice President, Global Financial Solutions, RGA. “We are delighted to be bringing this business into the RGA family and we believe that RGA provides a strong and stable home for HLAC’s policyholders.”

“The transaction demonstrates a strong cultural fit between RGA and HLAC,” said Deian Jones, Managing Director, HLAC. “The process has been executed swiftly and efficiently, and HLAC’s customers will see a seamless transition as we work towards completion of the transaction.”

HLAC plans to cease writing new business effective February 19, 2021, with an appropriate amount of time allowed for existing quotes and applications to proceed through to completion.

Completion of the transaction is subject to regulatory approval. Additional terms of the transaction are not being disclosed at this time.

Norton Rose Fulbright is acting as RGA’s legal counsel.

About RGA

Reinsurance Group of America, Incorporated (RGA), a Fortune 500 company, is among the leading global providers of life reinsurance and financial solutions, with approximately $3.4 trillion of life reinsurance in force and assets of $82.1 billion as of September 30, 2020. Founded in 1973, RGA is recognized for its deep technical expertise in risk and capital management, innovative solutions, and commitment to serving its clients. With headquarters in St. Louis, Missouri, and operations around the world, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, product development, and financial solutions. To learn more about RGA and its businesses, visit the company’s website at www.rgare.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005183/en/

FAQ

What is the stock symbol for Reinsurance Group of America?

The stock symbol for Reinsurance Group of America is RGA.

When is HLAC ceasing to write new business?

Hodge Life Assurance Company Limited (HLAC) plans to cease writing new business effective February 19, 2021.

What are the liabilities associated with HLAC?

Hodge Life Assurance Company Limited holds annuity liabilities of approximately £570 million ($780 million USD).

Is the acquisition of HLAC subject to any conditions?

Yes, the completion of the acquisition is subject to regulatory approval.