RGA Life Reinsurance Company of Canada (RGA Canada), a subsidiary of Reinsurance Group of America (RGA), has completed a longevity insurance transaction with Sun Life Assurance Company of Canada.
Under the agreement, RGA Canada will take part in a syndicated reinsurance transaction led by Sun Life to reinsure only the longevity risks associated with pension obligations held by Bell Canada (BCE), Canadian communications company and pension plan sponsor.
As part of the deal, RGA will reinsure the longevity risks associated with a C$5bn block of pension obligations, minimizing longevity risks for BCE.
RGA Canada president and CEO Alka Gautam said: "We have delivered an important longevity risk management solution for Sun Life and for BCE, uniting the pension, insurance and reinsurance worlds."
In a seperate development, SCOR Global Life has agreed to provide support for Sun Life relating to this longevity insurance transaction, which is claimed to be first in the Canadian market.
According to SCOR, the risk of the members living longer is transferred from BCE’s pension scheme to Sun Life and two reinsurers.
SCOR Global Life CEO Paolo De Martin said: "Fully consistent with SCOR’s "Optimal Dynamics" strategic plan, this transaction demonstrates our ability to leverage our successes in the UK longevity market in order to customize a solution for a Canadian client."