Canada Operations Net Premiums
(in millions USD)
Canada Operations ended 2016 with $356 billion of life reinsurance in force.
Total revenues reached $1.2 billion, a 9% increase over 2015.
For the eighth consecutive survey, RGA Canada was ranked #1 in the Business Capability Index in NMG Consulting’s 2016 Life & Health Reinsurance study of Canadian ceding companies.
From left, from RGA Canada: Brian Louth, Senior Vice President and Chief Marketing Officer; Candice Hung, Assistant Vice President, Group Actuarial.
In 2016, RGA Life Reinsurance Company of Canada (RGA Canada) again solidified its leadership position in individual life and health reinsurance and capital management. RGA also continued to be a market leader in creditor, group life and health, living benefits, and longevity reinsurance.
Top-line premium growth for the Canada segment was strong in 2016, with positive contributions from both new business and persistency within in-force policies. Net premiums for the year totaled $967 million, an increase of 10% over 2015. RGA maintained its leading market-share in 2016, reinsuring 28% of all new life insurance in Canada for a volume of $35 billion in new assumed individual life reinsurance.
The individual life underwriting team established a new record high of 42,014 facultative cases reviewed within RGA Canada’s largest business line. The strategy of diversifying into other lines of business again proved successful, with these lines contributing 36% of total 2016 premiums. Across all lines, RGA professionals partnered with clients to capitalize on emerging growth opportunities, including new initiatives in accelerated underwriting and digital delivery solutions.
Helping clients meet changing consumer needs inspired continued innovation in product development and execution. RGA worked with clients to create direct-to-consumer insurance products, bringing new approaches to design, distribution, and underwriting. RGA also partnered with a digital marketing provider to develop an end-to-end mobile insurance distribution platform.
After completing a landmark longevity transaction in 2015, RGA Canada again provided capital management support for clients throughout 2016. Longer lives are prompting pension plans in Canada to seek reinsurance capital to mitigate longevity risk. Global expertise in executing longevity transactions enables RGA to more effectively transfer clients’ long-tail liabilities for more-efficient capital deployment.
RGA reaffirmed its commitment to thought leadership and the advancement of the Canadian insurance industry in 2016. RGA events included the annual actuarial, claims, and underwriting seminar, which focused on understanding and adapting to consumer behavior, and a group forum on voluntary benefits that explored the growing customization of employee benefit programs. Through leadership roles on industry committees, presentations, publications, and individual consultations, RGA experts continued to identify and share new approaches to help insurers capitalize on the rapid and complex changes underway in this dynamic market.
President and Chief Executive Officer, RGA Life Reinsurance Company of Canada
HOW IS RGA HELPING INSURERS ADAPT TO CANADA’S CHANGING REGULATORY ENVIRONMENT?
In 2016, Canadian officials issued the Life Insurance Capital Adequacy Test (LICAT) guidelines. These guidelines go into effect January 1, 2018 and redefine capital requirements for insurance and reinsurance companies. We are proactively engaged with our clients in identifying the best strategies for meeting LICAT requirements while facilitating clients’ sustained growth. Our experience as a Canadian reinsurance leader in capital management, coupled with RGA’s established global expertise in regulatory compliance and enterprise risk management, ideally positions our team to develop effective, long-term solutions for life insurers.
IN WHAT WAYS IS RGA CANADA HELPING CLIENTS SIMPLIFY THE CUSTOMER JOURNEY?
Today’s insurance customers expect the buying experience to parallel that of other purchased goods: simple, fast, and online. RGA is working with clients to accelerate the insurance process – from acquisition through claims processing. We are moving beyond simplified issue to develop approaches that provide efficiently underwritten policies quickly and accurately. Our approach leverages technology, big data, and partnerships outside the traditional insurance space to create innovative solutions. In 2016, this included bringing TransUnion TrueRisk® Life, a credit-based insurance score that is highly predictive of mortality and lapse, to the Canadian market. Our goal: to help insurers keep pace with evolving consumer demands.
RGA CELEBRATES 25 YEARS IN CANADA IN 2017. WHAT HAS DRIVEN THE COMPANY’S SUSTAINED SUCCESS IN THIS MARKET?
RGA’s commitment to our clients has been a hallmark of our Canadian operations since day one – it is part of our DNA. This client focus has fueled our success and allowed us to grow from a five-person office into Canada’s life reinsurance leader. When our clients succeed, we succeed. Helping them identify and capitalize on opportunities in a changing insurance landscape is the top priority of every RGA associate. As we enter our next quarter-century, we will continue to apply experience, expertise, and innovation to deliver tailored products and services that benefit both our clients and the industry.