RGA in $1.7bn longevity swap & reinsurance with Western & Southern

Reinsurance Group of America (RGA) has completed a new US $1.7 billion longevity risk transfer arrangement that featured a swap and reinsurance provision for Cincinnati-based diversified financial services and life insurance specialist Western & Southern Financial Group.

The longevity swap arrangement covers roughly 11,000 single premium immediate annuity contracts, transferring the longevity related risk away from Western & Southern and backing it with RGA’s reinsurance capital.

“As demand for longevity risk management tools increases across the U.S., RGA is eager to work with clients to develop solutions that meet their specific needs,” explained David Lipovics, Vice President, U.S. Pension Risk Solutions, RGA.

“We credit our strong relationship with Western & Southern, as well as the dedicated teams from both companies, who collaborated exceptionally well to design, structure, and effectively complete this transaction.”

“Our relationship with RGA is a valuable part of our overall risk management strategy, making them an ideal partner for this transaction,” added Jacob Steuber, Vice President, Actuarial Analysis, Western & Southern.

“RGA was able to customize a solution that helps us maintain a desirable risk profile while continuing to offer competitive retirement solutions, and their support through this transaction and continued partnership into the future are greatly appreciated.”

The longevity swap transaction was effective as of March 31st 2022.

Including this latest transaction, we now have roughly UK £17.1 billion of longevity swaps listed in our longevity risk transfer deal directory for 2022.