Asia Pacific operations delivered a solid year overall in 2019, with robust business growth in Asia driving an increase in revenues of 18% over 2018. Pre-tax income of $128 million reflected strong earnings in Asia’s traditional and financial solutions business lines mitigating a loss in Australia operations. For the third consecutive year, RGA was named “Life Reinsurer of the Year” at the 2019 Asia Insurance Industry Awards. The Asia Pacific segment serves clients throughout the region from offices in Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, South Korea, and Taiwan. Primary reinsurance products include individual and group life, living benefits, health, high net worth, Retakaful, superannuation, annuity, and financial solutions.
Product innovation remained a primary focus in Asia as RGA partnered with clients to meet evolving consumer needs, from family-focused to senior-targeted coverage. Growing demand for holistic critical illness (CI) solutions drove the development of dozens of market-first products, including a comprehensive CI offering in Malaysia in response to that market’s liberalization of its CI definition. Two solutions RGA created with clients earned product-of-the-year awards in 2019: a CI product targeting people with chronic conditions in Singapore and a hospital cash product for cancer survivors in Taiwan.
RGA leveraged established underwriting expertise, advanced data analytics capabilities, and strategic insurtech partnerships to accelerate the insurance process and launch innovative digital solutions throughout the region. Examples include a digitally distributed cancer product in Vietnam with only one underwriting question, an online offering for seniors in China with health check-up services and a wellness feature, and data-driven risk assessment initiatives in India. The Japan office strengthened its market leadership in underwriting by applying artificial intelligence (AI) and other technologies to digitize processes and deliver faster, more accurate underwriting decisions.
Building on sustained momentum over recent years, Asia’s Global Financial Solutions (GFS) business produced strong results in 2019, generating a record-high $23 million in pre-tax income. The GFS team solidified RGA’s position as a regional financial solutions leader, executing transactions in its core markets while exploring emerging opportunities throughout the region. Growth drivers included an ongoing focus on asset-intensive business and development of hybrid reinsurance solutions in collaboration with RGA’s traditional reinsurance team.
The Australian insurance industry faced ongoing adverse claims experience along with persistent regulatory and economic challenges in 2019. Amid this difficult market environment, RGA continued to help clients address shared challenges and develop new solutions, while also working to remediate in-force business and improve earnings results. Ceding companies in Australia ranked RGA #1 on NMG Consulting’s 2019 All Respondent Business Capability Index.
Asia Pacific Operations Net Premiums
(in millions USD)