Global Financial Solutions
How Can We Help at Your Product Life Cycle Stage?
RGA pioneered the use of reinsurance as a financial management and portfolio optimizing tool, and we remain a leading provider of such solutions around the world. Please identify your need to explore a range of options.
- Grow (Build Value)
- Optimize (Enhance Value)
- Protect (Maintain Value)
- Monetize (Harvest Value)
Grow (Build Value)
- Finance new business strain
- Acquisition support
Finance capital strain by advancing future profits or by reducing redundant reserving or capital requirements associated with new business
Support acquisition activity by providing temporary or permanent capital, sharing in risk, or selling off unwanted pieces of acquired business
Optimize (Enhance Value)
- Re-capitalize after unexpected financial stress
- Manage accounting volatility
- Minimize cost of capital
- Optimize cost of capital
Provide temporary or permanent capital to shore up capital and RBC ratios
Use reinsurance to stabilize statutory or GAAP income
Reinsurance as a tool to provide a flexible, low-cost source of capital
Improve returns on capital and other ratios for existing business through the use of reinsurance or other capital solutions
Protect (Maintain Value)
- Financial pressure
- Transfer of longevity risk
- Transfer asset/market risks in addition to biometric risk
Respond to investor concerns, liquidity needs, stabilize/improve ratings, and more.
Provide coverage for longevity risk to support new Pension Risk Transfer (PRT) cases or protection on existing in force business
Manage exposure to investment risks or access investment capabilities of RGA through coinsurance
Monetize (Harvest Value)
- Re-deploy capital into higher growth/return opportunities
- Orphaned business
- Transfer of direct policy administration responsibilities through coinsurance with RGA
- Sale of legal entity
Meet a need to increase growth or returns.
Mitigate expense gaps, management distraction, and other issues from orphaned business.
Economically divest of a line of business through coinsurance with administration
Fully exit a line of business by divesting a legal entity
Every RGA transaction is highly tailored and the product of an information-sharing process designed to help clients achieve their objectives. In the Product Life Cycle grid above:
- The ‘Grow’ phase reflects the launch and early sales of a new product and how reinsurance can be used to support the costs and unknowns of how well it is received by the market.
- The ‘Optimize’ phase occurs when insurers seek to enhance the product’s value by, for example, lowering the cost of the capital necessary to support the scaled business.
- Companies in the ‘Protect’ phase devote more attention to reducing uncertainty surrounding the value of the business.
- The ‘Monetize’ phase occurs when clients exit the business by crystalizing the value they’ve built generating capital to invest into higher value priorities.
Our understanding of each client's specific capital and investment needs, as well as extensive knowledge of local markets and global best practices, uniquely positions RGA to find solutions that improve capital efficiency and promote long-term stability and growth.
Capital Solutions permit our clients to finance capital requirements more efficiently for their particular product mix and financial metrics.
Asset-Intensive Solutions enable our customers to realize the value embedded within their in-force investment spread business.
Longevity Solutions enable insurers and pension funds to alleviate uncertainty by reducing (and even eliminating) the impact of emerging long-term mortality trends.
Stable Value Solutions help asset managers and retirement plan sponsors provide low-volatility investment options to their participants.
Acquisitions Solutions add capabilities and capital to support clients in reaching their goals.
Clients can count on RGA’s collaborative approach, ability to deliver on promises, and track record of executing transactions. In fact, our partners choose RGA based on our strength, long-term dedication to the market, and deep expertise. RGA has supported the growth and financial objectives of annuity, life, and health insurers across North America for more than 30 years. Success is a direct result of our ability to understand clients’ particular needs and draw upon our collective expertise and knowledge to implement groundbreaking financial solutions.