Catastrophe reinsurer RenaissanceRe is getting into the life/annuity reinsurance business.
The company disclosed that it, along with Reinsurance Group of America, a global life insurer, have launched Langhorne Re, a global reinsurer focused on in-force life and annuity blocks. RenaissanceRe typically provides property, casualty and specialty reinsurance and some insurance products to customers, mainly through intermediaries.
Langhorne Re has nailed down $780 million in equity capital commitments so far, including investments from RGA and RenaissanceRe. Plans for the entity call for combining a strong long-term capital base with underwriting and third-party capital management support from RGA and RenaissanceRe to purchase large in-force life and annuity blocks, allowing clients to de-risk and optimize their capital management.
Aditya Dutt, president, Renaissance Underwriting Managers Ltd., said that the partnership makes sense in the current environment.
“RenaissanceRe’s experience with managing third party capital and sophisticated risk management combined with RGA’s experience in the life market make this a very attractive partnership,” Dutt said in prepared remarks. “As a result, we expect both clients and policyholders will be benefit from our long-term approach and track record of capital stewardship.”
RGA is headquartered in St. Louis, Missouri and operates in 26 countries, with a focus on individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, product development, and financial products. RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The company has offices in Bermuda, Ireland, Singapore, the United Kingdom, and the United States.
Sources: RenaissanceRe, RGA, Langhorne Re