RGA Global Reinsurance Company, Ltd. Overview

Transcription

1 RGA Global Reinsurance Company, Ltd. Overview April,

2 REINSURANCE GROUP OF AMERICA, INCORPORATED (RGA) RGA is one of the largest life reinsurers in the world, serving clients in more than 60 countries from operations in 26 countries around the world. RGA, a FORTUNE 500 company, has been listed on the New York Stock Exchange since 1993 (NYSE: RGA). As of December 31, 2014, RGA had approximately $2.9 trillion of life reinsurance in force and assets of $44.7 billion. Total revenues in 2014 were $10.9 billion. RGA s main operating subsidiary, RGA Reinsurance Company (RGA Re U.S.), was rated Best Overall Life Reinsurer in the 2015 Flaspöhler Survey (Direct Writers Evaluate Reinsurers / Life N. A.) by cedants. This is the sixth consecutive time RGA has been rated best overall in this biennial survey. RGA Global Reinsurance Company, Ltd. (RGA Global Re) is a wholly owned subsidiary of RGA. RGA Global Re, based in Bermuda, and its affiliate, RGA International Reinsurance Company Limited (RGA International Re), based in Ireland, together form an integral platform for RGA s business operations outside North America. Both RGA Global Re and RGA International Re received the AA- issuer credit and financial strength rating from Standard and Poor s. RGA GLOBAL RE RGA Global Re was licensed on December 15, 2005, in Hamilton, Bermuda. RGA established RGA Global Re to develop a capital-effective reinsurance company structure to write business from countries outside North America, allowing RGA Re (U.S.) to write primarily U.S. business. By forming a distinct legal entity and separating its international business from its North American business, RGA improves the efficiency of the management and administration of its international operations. The separation of RGA s international business from its North American business also allows for improved and more-efficient management of regulatory capital and solvency requirements. As a rated company, RGA Global Re provides strong counterparty protection for its clients. RGA Global Re currently operates branches in Taiwan and Labuan, a retakaful window in Labuan and a liaison office in Turkey. An additional branch is planned for Brazil. The security of experience. The power of innovation. 1

3 LINES OF BUSINESS The majority of the business reinsured by RGA Global Re is mortality-based. The company enters into reinsurance treaties for mortality business on a facultative and automatic basis or may enter into in-force block transactions. The underlying mortality product is primarily life insurance. The company also reinsures some health-based products such as critical illness and personal health insurance. These health-based products are often attached to life insurance products as either riders or policy provisions. The company uses the staff of RGA to market its products and services to existing and potential clients which, for the most part, are life insurance companies. RGA Global Re s treaties usually take the form of either quota share arrangements, where, as the reinsurer, RGA Global Re will receive a set percentage of all the risk of new business from 1st dollar, or of excess of retention arrangements. In an excess of retention deal, RGA Global Re will receive a set amount of risk over the direct life insurer s own retention. In addition to RGA Global Re s core business of life mortality, other insurance risk may be written. Below is a list of some of the products and definitions of products that have and can be written: Longevity risk related to annuity contracts. Accidental Death and Dismemberment, usually a rider on a life plan, pays out amounts based on the level of dismemberment. Critical Illness coverage pays out a lump sum upon diagnosis of a covered condition (e.g., stroke). The product is usually attached to a life insurance contract and will reduce or accelerate the life coverage. Total Permanent Disability is a lump sum payout product, usually attached to a life contract, and will reduce or accelerate the life cover. Waiver of Premium is a rider option on most life insurance contracts and will cover the insurance premiums for an individual if he or she becomes disabled and unable to work. Disability Insurance is a small part of RGA Global Re s business, which will pay an individual a lump sum or monthly payment if he or she becomes disabled. These contracts can pay out a monthly indemnity to age 65. Personal Health Insurance (PHI) is a health product that is attached to a life insurance policy (usually a whole life contract) and will pay an individual daily benefits for hospital care. These payments will reduce or accelerate the life insurance coverage. Retakaful business, which is the reinsurance of takaful insurance that is in compliance with Islamic jurisprudence. Surplus relief business that assists clients with capital management. Catastrophe coverage. CLIENTS RGA Global Re currently accepts business from clients in the following countries: Australia Bahrain Hong Kong Indonesia Japan Malaysia Oman Qatar South Africa Taiwan Thailand Turkey United Arab Emirates United Kingdom The security of experience. The power of innovation. 2

4 RETENTION RGA Global Re s retention limit is USD $250,000 on each conventional risk. Amounts in excess are ceded to captive subsidiaries of RGA and, if above RGA retention limits, retroceded to external retrocessionaires. RATINGS RGA Global Re receives high ratings for its claims-paying ability based on the company s financial condition and earnings. RGA Global Re is rated by Standard & Poor s and the rating has been consistently AA- since 2006 (current outlook: stable). Insurers rated in the AA- class offer very strong financial security characteristics, differing only slightly from those rated higher. RISK MANAGEMENT RGA Global Re is a Bermuda-based subsidiary of RGA and complies with the Bermudan supervisory authority regulations. Additionally, RGA Global Re is subject to RGA s enterprise-wide risk management framework which includes the following: Risk tolerance statements, high-level statements describing the risk philosophy Risk targets and limits outlining precise margins for more than twenty individual risks A structure of risk committees supporting the Chief Risk Officer A network of risk management officers (RMOs) embedded in business units A quarterly qualitative risk assessment, producing an ERM report that is presented to the Board of the Company A quarterly calculation of Principle Based Economic Capital, which allows for a quantitative assessment of the risk and serves as basis for targets and limits The security of experience. The power of innovation. 3

5 MEMBERS OF THE BOARD AND MANAGEMENT EXECUTIVE MEMBERS OF THE BOARD Paul Nitsou (Chairman) is Executive Vice President, Global Accounts, of RGA, with 30 years of experience in the industry. Jack Lay is Senior Executive Vice President and Chief Financial Officer of RGA, with more than 20 years of experience in the industry. David Boettcher is Executive Vice President, Global Financial Solutions, of RGA, with more than 30 years of experience in the industry. Tony Kin-Shun Cheng is Executive Vice President, Asia Markets of RGA, with 20 years of experience in the industry. RESIDENT BOARD MEMBERS Lawrence Bird Peter Crayford (alternate) Paul Springer (alternate) AUDITORS Deloitte & Touche Corner House, Church and Parliament Streets P.O. Box HM 1556 Hamilton, Bermuda HMFX COMPANY MANAGERS Marsh Management Services (Bermuda) Limited Victoria Hall 11 Victoria Street Hamilton, Bermuda HM11 LAWYERS Appleby Canon s Court, 22 Victoria Street, P.O. Box HM 1179, Hamilton HM EX, Bermuda Contact: Alan Bossin APPOINTED ACTUARY Jasper Wong, FSA, FCIA RGA Global Reinsurance Company, Ltd. CHIEF FINANCIAL OFFICER Michelle Ma RGA Global Reinsurance Company, Ltd. FINANCIAL REGULATOR The Bermuda Monetary Authority The security of experience. The power of innovation. 4

6 BMA House 43 Victoria Street Hamilton, Bermuda HM12 INVESTMENT MANAGER Outsourced to Reinsurance Group of America, Incorporated COMPANY PRINCIPAL OFFICE Victoria Hall 11 Victoria Street Hamilton, Bermuda HM11 T The security of experience. The power of innovation. 5