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Life Reinsurer Is Going Out for Business

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Reinsurance Group of America Inc. is expanding its ability to offer big reinsurance arrangements throughout the world.

RGA, a life and health reinsurer based in Chesterfield, Missouri, has announced two major deals this week.

The company’s RGAx insurtech arm has agreed to acquire LOGiQ3 Inc., a Toronto-based insurtech company.

The company has also agreed to team up with RenaissanceRe Holdings Ltd. to set up Langhorne Re, a reinsurer that will specialize in reinsuring large, in-force blocks of life and annuity business.

(Related: Reinsurer Says Mortality, Investment Spreads Look Fine)

RGA is a publicly traded reinsurer with about $59 billion in assets and $3.3 trillion of reinsurance in force.


Acquiring LOGiQ3 would help RGA manage any insurance companies, or large blocks of business, it acquires through reinsurance arrangements.

LOGiQ3 is a privately held company can underwrite life insurance, process insurance claims, and administer life and health reinsurance arrangements.

Another arm, TAI, provides reinsurance software and consulting services in the United States.

LOGiQ3 has a total of about 100 employees in the United States, Canada and the United Kingdom.

RGA hopes to complete the deal for LOGiQ3 by March 31. After the deal is completed, LOGiQ3 “will maintain a separate operation and retain employees in their current roles,” RGA says.

The other terms of the deal, including the price, were not available.

Langhorne Re 

RGA has already been helping life and health insurers transfer risk by assuming responsibility for large blocks of in-force business.

In December, for example, RGA agreed to reinsure individual annuity business, with a value of about $1.2 billion, for Liverpool Victoria Friendly Society, or LV=. An LV= company executive said the company made the deal partly in response to Europe’s tough new Solvency II rules.

RenaissanceRe, which was founded in 1993, is a large property-casualty reinsurer.

RenaissanceRe appears to be responsible for rounding up cash from pension funds and outside life insurers to fund Langhorne Re deals.

“Langhorne Re has secured $780 million of equity capital commitments including investments from RGA and RenaissanceRe,” RGA said in the Langhorne Re launch announcement.

—Read RGA Reinsures Annuities for a Zurich Unit on ThinkAdvisor.

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