(Bloomberg) — Reinsurance Group of America Inc. is transferring about $200 billion of life policies to Pacific Life Insurance Co. to free up funds.
The deal lets RGA release about $200 million of capital while reducing annual premiums in the U.S. traditional segment by about $450 million, according to a statement today from the Chesterfield, Missouri-based reinsurer.
"We expect that the capital freed up from this transaction can be redeployed to achieve a higher return over time," RGA Chief Executive Officer Greig Woodring said in the statement. "We continue to see good organic growth opportunities."
RGA, which was spun out of MetLife Inc., typically takes on policies that other firms are seeking to offload. The company has struck deals this year with firms including Voya Financial Inc.
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