Reinsurance Group of America (RGA) has entered into an agreement to acquire Swiss Re wholly-owned life insurance subsidiary Aurora National Life Assurance.
Terms of the transaction were not disclosed.
Part of the Swiss Re’s Admin Re business in the US, Aurora has around 82,000 policies in force and statutory policyholder liabilities of $2.7bn.
RGA global acquisitions executive vice-president Scott Cochran said: "We are pleased to announce this transaction which follows our strategy to deploy capital into attractive, closed block opportunities.
"This opportunity demonstrates our ability to leverage our deep knowledge of the US market while expanding RGA’s closed block capabilities."
According to RGA, Aurora’s business includes around two-thirds annuities, primarily payout annuities, and one-third interest-sensitive life products.
Alliance-One Services, a subsidiary of Computer Sciences Corporation, will operate the acquired business on behalf of RGA.
Subject to customary regulatory approvals, the transaction is expected to be completed in early 2015.
RGA offers individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, financial solutions and facultative underwriting services.
The company has about $3trn of life reinsurance in force and assets of around $43.2bn.
Image: RGA to acquire Swiss Re’s life insurance subsidiary Aurora National Life Assurance. Photo: courtesy of cooldesign/ FreeDigitalPhotos.net.