Missouri granted its first special purpose life reinsurance captive insurance company license to RGA Reinsurance Company, Chesterfield, Mo., a unit of Reinsurance Group of America Inc., in what the state says is a new option for insurers that could eventually generate $10 million in state revenue over 3 years.
Special purpose life reinsurance captives assume life insurance business from their corporate life insurance parent companies or affiliates to facilitate financing of life insurance reserves, says a statement from the Missouri Department of Insurance, Financial Institutions and Professional Registration.
The new license is now available because of amendments made to chapter 379 of Missouri law as outlined by S.B. 215 enacted in 2007.
The new license establishes a captive to assume business from a direct life writer or reinsurer, says John Rehagen, captive insurance program manager with the department.