Collaborative Investment Approach Fuels Client Solutions
RGA Investments and Global Financial Solutions (GFS) worked closely together in the successful execution of the transaction, which required an extended process to work through the client’s specific capital and risk management objectives.
In addition to working to secure and build the financial strength of the company, RGA Investments operates as an integral strategic partner in enabling business growth. We collaborate across the many teams within Investments and with colleagues throughout the RGA organization to facilitate transactions and achieve shared goals. Ultimately, our work is directed toward one primary objective: empowering RGA’s ability to deliver client solutions.
In 2021, RGA executed an asset-intensive transaction with a major member-owned fraternal financial services organization in the U.S. to reinsure a seasoned block of annuity business. RGA Investments and Global Financial Solutions (GFS) worked closely together in the successful execution of the transaction, which required an extended process to work through the client’s specific capital and risk management objectives.
The transaction demonstrated the value of RGA’s collaborative, client-focused approach and the breadth of capabilities across our Investments teams:
- Investment Solutions – led and cohesively orchestrated Investments’ efforts; developed and successfully executed an innovative investment strategy including the use of derivatives and tactical investments to make the transaction work.
- Credit Research – conducted extensive bottoms-up research on individual credits to be included in an innovative derivative strategy to achieve incremental yield.
- ReCap, RGA’s commercial mortgage loan and real estate group – evaluated $400 million in real estate assets, physically inspecting more than 100 properties and reviewing related loan documentation.
- Global Portfolio Management/Structured Products – partnered with a specialty asset manager to enable investment in a competitive asset class.
- Derivative Operations – supported the derivative strategy implementation and onboarded a new counterparty.
- Investment Risk – analyzed the risks and stress-tested key elements of the transaction.
- Investment Operations – set up a new structure and new processes for documenting information and sharing data among parties to facilitate a long-term partnership with our client.
A total team effort from Investments provided GFS with the support they needed to tailor a mutually beneficial transaction for RGA and our client partner.