RGA jumps on $32 billion reinsurance deal with Equitable

Reinsurance of America, Incorporated

24/02/2025 18:59

** Shares of life and health reinsurer Reinsurance Group of
America  RGA.N  jump 6.3% to $201.29
    ** RGA strikes $32 billion reinsurance deal with financial
services firm Equitable Holdings  EQH.N  
    ** Co will reinsure 75% of EQH's in-force life insurance
business as part of the deal
    ** Deal expected to contribute about $70 million of adjusted
operating income before tax in 2025 to RGA, and about $200
million per annum over time 
    ** RGA will deploy $1.5 billion of capital into the
reinsurance transaction, which is expected to close in mid-2025
    ** Co anticipates raising capital in connection with the
transaction through long-term debt
    ** Goldman Sachs and Clifford Chance US advised RGA on the
transaction
    ** As of last close, RGA down 11.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))