Profile: Reinsurance Group of America Inc (RGA)
22 Jul 2016
Reinsurance Group of America, Incorporated (RGA), incorporated on December 31, 1992, is an insurance holding company. The Company provides traditional and non-traditional life and health reinsurance. The Company has geographic-based or function-based segments, including U.S. and Latin America; Canada; Europe, Middle East and Africa; Asia Pacific, and Corporate and Other. Its geographic-based operations are further segmented into traditional and non-traditional businesses. The Company's subsidiaries include Reinsurance Company of Missouri, Incorporated, RGA Americas Reinsurance Company, Ltd., RGA Reinsurance Company (Barbados) Ltd., RGA International Reinsurance Company Limited and RGA Reinsurance Company of Australia Limited. Traditional reinsurance includes individual and group life and health, disability, and critical illness reinsurance. Non-traditional reinsurance includes longevity reinsurance and asset-intensive reinsurance.
U.S. and Latin America
The U.S. and Latin America operations represent approximately 56.3% of the Company's net premiums. The U.S. and Latin America operations offer traditional life and health reinsurance, reinsurance of asset-intensive products, and financial reinsurance, primarily to the United States life insurance companies.
The U.S. and Latin America Traditional segment provides life and health reinsurance to domestic clients for a range of products through yearly renewable term agreements, coinsurance, and modified coinsurance. This business has been accepted under various rate scales, with rates often tailored to suit the underlying product and the needs of the ceding company. Premiums typically vary for smokers and non-smokers, males and females, and may include a preferred underwriting class discount. Reinsurance premiums are paid in accordance with the treaty, regardless of the premium mode for the underlying primary insurance. This business is made up of facultative and automatic treaty business. In contrast to facultative reinsurance, reinsurers do not engage in underwriting assessments of each risk assumed through an automatic treaty. The U.S. and Latin America facultative reinsurance operation involves the assessment of the risks inherent in multiple impairments, such as heart disease, high blood pressure, and diabetes; cases involving policy face amounts, and financial risk cases. Automatic business is generated pursuant to treaties, which requires the underlying policies meet the ceding company's underwriting criteria, although in certain cases such policies may be rated substandard. In addition, several of the Company's U.S. and Latin America clients have purchased life insurance policies insuring the lives of their executives. These policies have generally been issued to fund deferred compensation plans and have been reinsured with the Company.
The Company's U.S. and Latin America Asset-Intensive segment primarily concentrates on the investment risk within underlying annuities and corporate-owned life insurance policies. These reinsurance agreements are structured as coinsurance, coinsurance with funds withheld, or modified coinsurance of primarily investment risk such that the Company recognizes profits or losses primarily from the spread between the investment earnings and the interest credited on the underlying annuity contract liabilities. Annuities are normally limited by the size of the deposit from any single depositor. The Company also reinsures certain indexed annuities, variable annuity products that contain guaranteed minimum death or living benefits and corporate-owned life insurance products. Corporate-owned life insurance normally involves a range of insureds associated with each deposit, and the Company's underwriting guidelines limit the size of any single deposit. The individual policies associated with any single deposit are issued within pre-set guaranteed issue parameters.
The Company's U.S. and Latin America Financial Reinsurance segment assists ceding companies in meeting applicable regulatory requirements, while managing their financial strength and regulatory surplus position. The Company commits cash or assumes regulatory insurance liabilities from the ceding companies. Generally, such amounts are offset by receivables from ceding companies that are repaid by the future profits from the reinsured block of business. The Company structures its financial reinsurance transactions so that the future profits of the underlying reinsured business exceed the amount of regulatory surplus provided to the ceding company.
The Canada operations represent approximately 10.2% of the Company's net premiums. The Company operates in Canada primarily through its subsidiary, General American Life Reinsurance Company of Canada (RGA Canada). RGA Canada is a life reinsurer in Canada, based on new individual life insurance production. It assists clients with capital management and mortality, and morbidity risk management and is primarily engaged in traditional individual life reinsurance, as well as creditor, group life and health, and living benefits (critical illness and disability) reinsurance. Creditor insurance covers the balance on personal, mortgage or commercial loans in the event of death, disability or critical illness and is generally shorter in duration than individual life insurance. It is generally composed of facultative and automatic treaty business. Facultative reinsurance involves the assessment of the risks from a medical and financial perspective. The Canada Non-Traditional Reinsurance segment concentrates on assisting clients with longevity risk transfer structures within underlying annuities and pension benefit obligations, and on assisting clients in meeting applicable regulatory requirements, while managing their financial strength and regulatory surplus position through financial reinsurance structures. The customers of this segment include most of the life insurers in Canada.
Europe, Middle East and Africa Operations
The Europe, Middle East and Africa operations represent approximately 15.1% of the Company's net premiums. This segment serves clients from subsidiaries primarily located in France, Germany, Ireland, Italy, the Netherlands, Poland, South Africa, Spain, the United Arab Emirates (UAE) and the United Kingdom (UK). The principal types of reinsurance for this segment include life and health products through yearly renewable term and coinsurance agreements, the reinsurance of critical illness coverage that provides a benefit in the event of the diagnosis of a pre-defined critical illness and underwritten annuities. The reinsurance agreements of critical illness coverage can be either facultative or automatic agreements. Premiums earned from critical illness coverage represents approximately 20.8% of the total net premiums for this segment. The principal types of reinsurance for Non-Traditional Reinsurance segment include longevity, asset-intensive and financial reinsurance.
Asia Pacific Operations
The Asia Pacific operations represent approximately 18.3%. The Company has a presence in the Asia Pacific region with its offices located in China, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, South Korea and Taiwan. The Company also has a reinsurance subsidiary in Australia. The principal types of reinsurance for Traditional Reinsurance segment include life, critical illness, health, disability and superannuation. Superannuation funds accumulate retirement funds for employees, and in addition, offer life and disability insurance coverage. Premiums earned from critical illness coverage represents approximately 20.1% of the total net premiums for this segment. The Non-Traditional segment includes financial reinsurance, asset-intensive and certain disability and life blocks.
Corporate and Other
Corporate and Other operations include investment income from invested assets not allocated to support segment operations and undeployed proceeds from the Company's capital-raising efforts, in addition to investment related gains or losses. Corporate and Other includes results from, among others, RGA Technology Partners, Inc. (RTP), a subsidiary that develops and markets technology solutions for the insurance industry and the investment income and expense associated with the Company's collateral finance and securitization notes.
The Company competes with Munich Re, Swiss Re, Hannover Re, SCOR Global Re, Pacific Life Re and Prudential Financial.
Reinsurance Group of America Inc
16600 Swingley Ridge Rd
CHESTERFIELD MO 63017-1706