Private asset investments promote COVID-19 relief and borrower support

  • Brett Parr

    Brett Parr

    Senior Director, Private Debt & Equity

  • Trevor Gibson

    Trevor Gibson

    Senior Director, Private Debt & Equity

  • Daniel Wieman

    Daniel Wieman

    Vice President, Real Estate Credit Risk Management

  • Brooks Colvin

    Brooks Colvin

    Vice President, Real Estate Credit Risk Management

RGA’s investment platform is directed toward empowering the business’ ability to deliver client solutions, and our dedicated in-house private debt and equity and real estate platforms provide direct access to those private markets. In 2020, this diversified investment portfolio not only delivered strong returns and positioned RGA for continued growth, but also contributed to supporting the communities where we live and work.

Battling COVID-19 with focused investments

RGA’s Private Debt & Equity (PD&E) unit invests in individual businesses and in private equity funds, specializing in family-owned industrial businesses in North America.

In response to COVID-19, the PD&E unit invested directly in companies that shifted their manufacturing capabilities to make equipment to battle the pandemic.

These companies included:

  • A furniture manufacturer that modified operations to produce protective face masks and gowns for frontline workers.
  • An electronic test company that adapted its products to make electronic parts for ventilators used for the most severe cases of COVID-19 and to supply parts that help provide better and faster patient testing.
  • A manufacturer and distributor of room dividers that produced health screens, partitions, and shields to protect individuals during the pandemic.

PD&E's portfolio includes companies with annual revenues ranging from $25 million to $150 million, and operating earnings ranging from $5 million to $25 million, which is an important, growing part of our alternative investment strategy aimed at diversifying RGA’s overall investment portfolio. The direct relationships built with sponsors and organizations give the PD&E unit unique insights into RGA’s investments, allow us to add significant value, and contribute to Investments’ overall role in enabling client solutions.

Helping borrowers while maintaining discipline

ReCap, RGA’s fully integrated commercial mortgage loan and real estate team, supports the organization’s $5.8 billion in commercial mortgage loan investments. Our eight regional offices provide direct access to markets, while our in-house servicing and asset management teams allow us to work directly with our borrowers to solve problems.

As local businesses began to struggle and borrowers faced short-term cash flow issues due to the pandemic, we acted with integrity and took a win-win approach to managing through difficult times.

Targeted modifications, such as deferred payments or switching from amortizing payments to interest-only payments for a certain time period, provided relief to RGA’s borrowers. Meanwhile, our disciplined approach protected RGA’s balance sheet: ReCap did not forgive any principal or interest on our loans and ended the year with no delinquent loans.

RGA’s quick response to the crisis and our client partners’ needs ensured we were well-positioned to resume lending as the market reopened and enhanced our reputation for both efficient execution and ethical operations.

    • Sergi Turabelidze
      Sergi Turabelidze

      Vice President, Head of Investment Solutions

    Investing in our clients’ success

    “Investment Solutions remained committed to strengthening and diversifying investment operations to make delivering innovative financial solutions possible in 2020.”

    READ MORE

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