Capital management has taken on increasing importance in recent years due to the weakened financial markets as many companies experienced falling asset values, increasing liability values, and increased solvency margin requirements — putting significant pressure on their balance sheets.

Many clients have been proactively using capital-motivated or financial reinsurance for decades to effectively manage their capital and improve their solvency position. We should know – RGA pioneered this use of reinsurance as a flexible and effective financial and capital management tool.

At RGA, our experts can provide you with an integrated approach to capital-motivated reinsurance. We leverage our global investment and risk knowledge,
our financial strength as a company, and our access to capital to deliver the capital you need — precisely when you need it.

Our finance team also has a comprehensive understanding of life insurance securitization structures to help you manage long-term capital needs and meet regulatory reserve requirements. We are well-positioned to react to potential regulatory changes around the world and we continually explore opportunities in regulatory markets where we conduct business.

Capital-Motivated/Financial Reinsurance Solutions

Below are a few examples of how our capital-motivated or financial reinsurance solutions can help you manage your capital and risk:

• Support sales growth by offsetting acquisition cost strain
• Improve returns on equity by decreasing amount of capital
• Reduce cost of capital, especially compared to other forms of capital such as equity
• Improve level and timing of statutory earnings
• Improve capital and surplus ratios
• Improve capital allocations
• Maximize capital efficiency
• Unlock capital invested in low-return products and redeploy to better performing products

Raising External Debt or Capital
If you need to raise additional outside capital to fund growth, a well-structured reinsurance program can offer the following advantages over other financing alternatives:

• Flexibility of duration, size and structure
• “Just-in-time” capital
• Minimal transaction costs
• Risk protection beyond capital investment
• Lower risk-based capital requirements

We invite you to contact us to learn more about our capital-motivated and financial reinsurance solutions and how we can help you with your capital and financial planning needs.

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