Canada operations are engaged primarily in individual life reinsurance, while also providing leading creditor, group life and health, critical illness, disability, and longevity reinsurance products and services. In 2021, ceding companies ranked RGA #1 on NMG Consulting’s All Respondent Business Capability Index in Canada for the 12th time in 13 years.
Organic new business growth accelerated as RGA Canada stepped up to meet insurers’ needs and increased consumer demand for insurance protection, reinsuring 28% of all new individual life reinsurance issued in Canada for a volume of $47 billion in new assumed individual life reinsurance in force. Total revenues increased by 15% to exceed $1.5 billion for the first time. Despite approximately $60 million in COVID-19-related claim costs for the year, RGA Canada’s diversified lines of business proved resilient, generating pre-tax income of $143 million in 2021.
RGA combines established underwriting expertise with advanced data analytics and digital capabilities to deliver client-focused solutions. RGA Canada remained a market leader in facultative underwriting in 2021, reviewing more than 36,000 facultative cases and developing a triage model to manage facultative cases and respond to client needs more efficiently. To help insurers optimize accelerated underwriting programs, RGA experts provided trusted guidance on best practices and, in some cases, actively participated in the development of the programs, such as an innovative smoker propensity model for a key client. Teams from RGA, RGAX, and AURA NEXT, RGA’s data-driven decision management platform, collaborated with another client and an insurtech to launch an innovative end-to-end digital insurance solution in 2021 that provided approximately $1 billion of insurance coverage in its first year.
RGA combines established underwriting expertise with advanced data analytics and digital capabilities to deliver client-focused solutions.
Group life business produced exceptional results in 2021. RGA Canada built on established partnerships in individual life business, adding some of these partners as group reinsurance clients. In an increasingly competitive industry landscape, a deep knowledge of the market and a differentiated, full-service value proposition enabled the group team to both identify client pain points and develop comprehensive solutions to address them.
The Canadian regulatory environment, specifically the coming IFRS-17 accounting framework combined with solvency requirements, continues to create a range of significant challenges for insurance companies. In 2021, RGA solidified its position as a recognized thought leader and solutions provider in this area, actively reaching out to clients to assist in their preparations and to identify potential business opportunities. RGA Canada partnered with the Global Financial Solutions team and client partners to develop innovative ways to structure transactions that both complied with solvency requirements and optimized capital efficiency.
Advancing the Canadian insurance industry remained a priority. RGA Canada again sponsored major industry events, and company leaders continued to serve in prominent positions within industry organizations. RGA thought leaders shared expert knowledge through client outreach, training sessions, online events, and published papers to address key issues – from the insurance implications of liquid biopsies to approaches to modeling COVID-19 impacts.