Assumption risk in mortality, morbidity and lapse rates
Pricing depends on experience assumptions that can prove wrong over long contract lives.
- Scope
- Traditional life and health treaties
- Materiality
- high
Reinsurance Group of America, Incorporated
Reinsurance Group of America is a U.S.-based insurance holding company focused on life and health reinsurance. Through its subsidiaries, it provides traditional mortality, morbidity, longevity and asset-intensive reinsurance to insurance companies across the Americas, Europe, Asia Pacific, the Middle East, Africa and Australia.
5,0 %
+7,2 %
| % | |
|---|---|
| Traditional life and health reinsurance | 45% Yearly renewable term, coinsurance and facultative treaties covering mortality, morbidity, disability and critical illness risk. |
| Asset-intensive reinsurance | 30% Reinsurance of annuities, corporate-owned life insurance and other products with significant investment risk. |
| Financial solutions | 20% Longevity, closed-block, capital management and other structured reinsurance transactions. |
| Funding Agreement Backed Notes and related spread business | 5% Funding agreements and related spread-based liabilities used to support institutional note issuance. |
RGA sells primarily to life insurance companies and other insurers that want to transfer mortality, longevity,...
- Global life insurance companiesprimary
Buy traditional life and health reinsurance to transfer mortality, morbidity and longevity risk and to support underwriting capacity.
- Regional and local insurersprimary
Buy treaty reinsurance for individual and group life, disability, critical illness and superannuation-related coverage.
- Annuity and asset-intensive writersprimary
Buy structured reinsurance on annuities, corporate-owned life insurance and other investment-sensitive blocks.
- Capital management and closed-block clientssecondary
Buy longevity, closed-block and financial solutions transactions to manage capital and runoff exposure.
- Institutional investorsemerging
Participate in FABN issuance backed by funding agreements with matching terms.
RGA operates through regional segments in the U.S. and Latin America, Canada, EMEA and Asia Pacific, with corporate...
- •U.S. and Latin America is a core operating segment
- •Canada focuses on life, health and asset-intensive reinsurance
- •EMEA writes traditional and financial solutions business
- •Asia Pacific includes offices across Asia and Australia
- •Geographic mix affects regulation, currency and product structure
RGA’s strategy centers on combining underwriting expertise, data analytics and investment discipline to win complex...
01
Grow traditional and structured reinsurancemedium-term
Broader product capability helps win large blocks and recurring treaty business.
02
Maintain disciplined asset-liability managementshort-term
Reinsurance economics depend on matching asset duration, currency and credit characteristics to liabilities.
03
Broaden global client relationshipsmedium-term
Large insurers value execution certainty, service and long-term capacity from a stable reinsurer.
RGA is exposed to underwriting risk from mortality, morbidity, lapse and longevity experience, as well as investment...
Longevity and asset-intensive spread risk
Longer-than-expected policy lives or lower investment spreads can pressure economics.
- Scope
- Annuities, closed blocks and financial solutions
- Materiality
- high
Counterparty and retrocession credit risk
Recoveries depend on the financial strength of ceding companies and retrocessionaires.
- Scope
- Claims recoverables and reinsurance receivables
- Materiality
- medium
Regulatory and execution risk on large transactions
Deals can be delayed, restructured or fail to close, affecting growth and capital deployment.
- Scope
- Structured reinsurance transactions
- Materiality
- medium
Foreign exchange and jurisdictional risk
Operations span multiple currencies and insurance regimes across regions.
- Scope
- EMEA, Asia Pacific and Latin America
- Materiality
- medium
Insurance reserves and future policy benefits
Mortality, morbidity, lapse, longevity and expense assumptions
Asset-intensive and financial solutions accounting
Annuities, funding agreements and closed blocks
Derivatives and fair value measurements
Interest-rate, currency and credit risk management
Reinsurance recoverables and credit estimates
Balance sheet assets and loss recognition
: 29/04/2026