Missouri has granted the state’s first license for a special purpose life reinsurance captive to RGA Reinsurance Company.
Executives at RGA Re, Chesterfield, Mo., a unit of Reinsurance Group of America Inc., St. Louis, were not immediately available for comment.
Officials at the Missouri Department of Insurance, Financial Institutions and Professional Registration say S.B. 215, the 2007 bill that set up the captive license program, creates a new option for insurers and could generate as much as $10 million in revenue over 3 years.
Special purpose life reinsurance captives help finance life insurance reserves by assuming life insurance business from corporate life insurance parent companies or affiliates.