Global life and health reinsurer, Reinsurance Group of America (RGA), announced an agreement with National Insurance Company of America and its affiliates to reinsure a variety of life insurance business through a co-insurance arrangement.

Under the terms of the agreement, approximately $3.5 billion of American National’s statutory reserves will be transferred to RGA’s subsidiaries. American National will continue to provide services and support to policyholders.

Senan O’Loughlin (pictured above), executive vice president of American Individual Life at RGA, said the agreement represents an expansion of the relationship with American National.

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He said the co-insurance agreement is the result of close collaboration between RGA and its clients and its understanding of their needs, allowing the company to create solutions that align with its clients’ strategic business objectives.

The deal, which had an effective date of July 1, was completed on August 26. Wells Fargo served as exclusive financial advisor to RGA, and Clifford Chance US LLP provided legal advice. No further details about the deal were disclosed.

RGA Q2 Results

Earlier this month, RGA also reported net income of $203 million, or $3.03 per diluted share, for the second quarter.

That’s down slightly from $205 million, or $3.05 per diluted share, in the same quarter last year. The company’s adjusted operating income for the quarter was $365 million, or $5.48 per diluted share, compared with $297 million, or $4.40 per diluted share, a year earlier.

Meanwhile, RGA’s aggregate net premiums totaled $3.9 billion in the second quarter, up 17.5% compared to the same period in 2023. This figure includes a net negative foreign currency impact of $33 million.

“Our traditional financial solutions business in Asia performed very well in the first quarter, and our traditional financial solutions business in the US and EMEA also performed well,” said CEO Tony Cheng. “We had a strong quarter of ongoing transactions, deploying $307 million of capital. In addition, we continued to see good momentum in organic new business activity.”

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