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RGA Agrees to Sell a Dutch Life Subsidiary

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Reinsurance Group of America Inc. says it plans to sell a small life and annuity subsidiary in the Netherlands to a bigger Dutch life insurer.

De Goudse N.V. has agreed to buy Leidsche Verzekering Maatschappij N.V. from RGA.

RGA and De Goudse are not saying how much De Goudse might pay for Leidsche Verzekering.

(Related: Earnings: Prudential, Genworth, CNO, RGA, Sun Life)

The companies announced the deal agreement Tuesday.

RGA is a life, health and annuity reinsurer based in Chesterfield, Missouri.

Leidsche Verzekering is based in Gouda, a city in the Netherlands.

De Goudse is a Gouda-based life insurer with the equivalent of about $800 million in annual revenue.

RGA said it and De Goudse need to get approvals from Dutch antitrust regulators, De Nederlandsche Bank and the Bermuda Monetary Authority before they can complete the deal.

Under Dutch law, they also must consult with a body that represents the interests of Leidsche Verzekering’s employees.

The companies did not provide an estimated deal completion date.

Leidsche Verzekering

Leidsche Verzekering was incorporated in 1994.

RGA bought the company in 2013, for $12.5 million, in an effort to increase reinsurance sales in the Netherlands, according to a Form 10-K annual report RGA filed with the U.S. Securities and Exchange Commission for 2013.

When RGA bought Leidsche Verzekering, it had $147 million in assets and $135 million in liabilities.

Leidsche Verzekering ended 2019 with about $500 million in liabilities, according to RGA.

The Thinking

Olav Cuiper, an RGA executive, said in a comment included in the deal announcement that RGA began trying to sell Leidsche Verzekering before COVID-19 appeared.

Johan Tulip, another RGA executive, said RGA sold Leidsche Verzekering because RGA could not support the company’s long-term growth strategy in the protection insurance market.

“We are confident De Goudse is aligned with Leidsche’s vision and will be an excellent new home for the policyholders and employees of Leidsche,” Tulip said.

— Read RGA Closes On ING Deal, on ThinkAdvisor.

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