Farmers New World Life is a unit of Zurich Insurance. (Photo: Thinkstock)

Reinsurance Group of America Inc. recently agreed to reinsure a large closed block of annuities for Farmers New World Life.

The block is big enough to increase RGA’s asset base by about $2.3 billion, according to RGA.

(Related: Annuity Players Continue to Fight Low Rates)

RGA, a Chesterfield, Missouri-based reinsurer, closed on the deal within four months after Farmers New World Life put out a request for reinsurance, according to John Laughlin, RGA’s executive vice president for global financial solutions.

Before RGA made the Farmers New World Life deal, it had about $54 billion in assets. The Farmers New World Life deal will increase its asset total by about 4%.

Farmers New World Life was founded as Catholic Life Insurance Co. in 1910. The Los Angeles-based Farmers Insurance Group acquired the life company and gave it its current name in 1953.

Zurich Insurance Group Ltd., a Swiss insurer, acquired Farmers Insurance in 1998.

Zurich uses Farmers New World Life, which is now based in Mercer, Washington, to write life insurance and annuities in the United States.

Farmers New World Life collected $1 billion in premium revenue in 2016, and it ended the year with $7.2 billion in assets, according to a Texas Department of Insurance company information summary page.

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