RGA’s Europe, Middle East, and Africa (EMEA) operations serve clients from offices in France, Germany, Ireland, Italy, the Netherlands, Poland, South Africa, Spain, the United Arab Emirates, and the United Kingdom. The segment’s principal areas of focus include individual and group life, credit life and living benefits, health, distribution, longevity, and capital solutions.
EMEA operations enjoyed a successful year, generating pre-tax income of $303 million, a 20% increase over 2018. Diversified earnings growth featured strong contributions from both traditional and financial solutions lines. For the seventh consecutive year, ceding companies ranked RGA #1 on NMG Consulting’s 2019 All Respondent Business Capability Index (BCI) for the EMEA region in aggregate. RGA also ranked #1 on NMG’s All Respondent BCI in Continental Europe, Italy, the Netherlands, Poland, South Africa (for the 10th consecutive year), and the U.K.
The EMEA team delivered consistent growth in traditional business lines in 2019. With a spike in re-tendering activity among insurers in the U.K., RGA worked to garner a leading share of expected new market premium and maintained its position as the market leader in new mortality business. In Italy, RGA built on recent years’ momentum, particularly in credit life and health reinsurance, and was named Best Reinsurer for Life & Health Protection at the 2019 Italy Protection Awards & Forum. Health was also a major growth driver in the Middle East as insurers adjusted to compulsory coverage and other healthcare reforms. The French team created new opportunities through innovation, such as employing robotic process automation (RPA) to improve underwriting efficiency.
Two market milestones – RGA’s 10th anniversary in the Netherlands and 20th in South Africa – accompanied strong performances by both offices. The Dutch team produced an exceptional year as transactions in both traditional and longevity businesses fueled earnings alongside ongoing organic growth.
In South Africa, RGA strengthened its leadership position, building on sustained business momentum and executing a number of capital relief transactions, as well as a large distribution arrangement with an affinity partner.
New business acquired through transactions in 2019 and solid performance from existing blocks produced another strong year for Global Financial Solutions (GFS) in EMEA. In Ireland, RGA executed its first euro-denominated asset-intensive transaction and, in the process, developed capabilities to facilitate similar transactions moving forward. Increased need for pension risk transfer solutions drove longevity business, primarily in the U.K. and the Netherlands, and RGA continued to work with clients in structuring capital-solutions transactions to help meet solvency requirements. At year-end, the GFS transaction pipeline in EMEA remained active, fueled by demand for longevity risk solutions and capital optimization strategies.
EMEA Operations Net Premiums
(in millions USD)