RGA’s investment philosophy is to build and maintain a portfolio that can weather economic cycles by balancing risk and return. This requires diligence in investment selections, thorough consideration of downside risk, and surveillance to achieve target performance.
Executive Vice President and Chief Investment Officer
RGA Investments supports the organization’s financial strength by generating stable investment income over the long term. Our team also serves as an integral partner in empowering RGA’s ability to serve clients. As insurers’ needs for financial solutions have grown, we have strengthened and diversified our investment operations to make delivering these solutions possible.
RGA’s investment philosophy is to build and maintain a portfolio that can weather economic cycles by balancing risk and return. This requires diligence in investment selections, thorough consideration of downside risk, and surveillance to achieve target performance. In 2020, the value of this disciplined approach was borne out in a challenging market environment. Despite pandemic-driven volatility, RGA ended the year with strong credit performance. The modest credit losses occurred at a level that would be expected in an average year, rather than an unusual environment with economic shutdowns.
RGA entered 2020 with a portfolio that was well-diversified and defensively positioned. Building on this foundation as the pandemic unfolded, we proactively assessed unique features and risks of the environment and took decisive action to incorporate changing risk-reward trade-offs, further bolstering the strength of the organization. Our priority was to maintain the liquidity necessary to ensure RGA stayed in a strong position to manage through the pandemic. As this was a dual event – both a health crisis and a stressed economic environment – we worked closely with colleagues in Finance and Risk to determine the best course of action for the company overall.
Annualized Growth in Assets Under Management
Market Value (in Billions USD)
(Five-year CAGR, 2015-2020)
Despite volatile markets in 2020, RGA's assets performed very well, even in our sectors hit more directly by shutdowns, demonstrating the Investments team’s expert capabilities in portfolio management. Among the many highlights:
- Private Debt & Equity closed a record-high $407 million in new loans, even after the market paused new originations in the early stages of the pandemic. Work to build out the team continued, and year-end saw a growing pipeline of opportunities.
- ReCap, RGA’s commercial mortgage loan and real estate team, provided relief via targeted loan modifications to borrowers experiencing cash-flow issues, without having to forgive any principal or interest.
- Structured securities analysts partnered with an outside firm specializing in the aviation space to devise a creative investment in short-term securities that provided a significantly higher return than single-A corporate bonds.
- The Investment Solutions team collaborated with colleagues in Global Financial Solutions (GFS) to facilitate transactions and support the acquisition of new reinsurance business, helping to deliver an exceptional year for GFS.
Ultimately, RGA investment professionals work to strengthen the company’s ability to serve clients, and in 2020 that client focus again proved to be a sound investment strategy
Private asset investments promote COVID-19 relief and borrower support
“Private Debt and Equity and ReCap teams adapted quickly to meet the challenges faced by our client partners and our communities.”
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.”