Reinsurance Group of America (RGA), a leading global life and health reinsurer, has reached an agreement with Tongyang Life Insurance to increase coverage of an existing co-insurance contract originally executed in June 2024. Under this arrangement, coverage is expanded by an additional KRW150bn ($109m).
In July 2024, RGA announced it had reached an agreement with Tongyang Life for an RGA subsidiary to reinsure a KRW200bn in-force block of life policies through co-insurance. This was the first cross-jurisdictional coinsurance transaction in South Korea.
Commenting on the increased coverage, Mr Gaston Nossiter, SVP and head of Asia Pacific, Global Financial Solutions at RGA, said in a statement, “This milestone transaction underscores our commitment to delivering customised asset-intensive solutions that address the unique financial objectives and customer needs of insurers in the Asia-Pacific region. By leveraging our extensive local market knowledge combined with global best practices, we can support Tongyang Life’s long-term goals within the current economic and regulatory landscape.”
Mr Moon-Koo Lee, CEO of Tongyang Life, said, “The expansion of our co-insurance agreement with RGA allows us to respond to the increasing capital management requirements for insurers in the market.
“Through our strong partnership with RGA, we can continue to implement advanced capital management measures to protect policyholders in the future.”
Founded in 1973, RGA is a global industry leader specialising in life and health reinsurance and financial solutions. RGA had approximately $3.8tn of life reinsurance in force and assets of $109.9bn as of 30 June 2024.