Reinsurance Group of America Inc. has agreed to take over a Dutch company’s U.S. and Canadian group life, accident and health reinsurance business.
RGA, Chesterfield, Mo., (NYSE:RGA) is getting the business from ReliaStar Life Insurance Company, Minneapolis, a unit of ING Groep N.V., Amsterdam.
The acquisition, which will be structured as an indemnity coinsurance agreement, is set to take effect Jan. 1, 2010.
RGA is not saying how much it will pay for the ReliaStar business, but RGA President A. Greig Woodring says it will use its own cash to pay for the deal and expects to deploy about “$115 million of capital to support the business.”
RGA and ING hope to complete the deal by March 31, 2010.
The deal “gives us a far more substantial presence in the North American group reinsurance market,” Woodring says.
The deal also gives RGA “a highly regarded team in Minneapolis,” and that team will stay in place, RGA says.