Principal RGA business lines in the U.S. and Latin America include individual life and health; group life, health, and disability; and asset-intensive, capital-solutions, and longevity reinsurance. RGA experts in the region also serve clients and the industry by providing leading life and health insurance insights.
Despite absorbing approximately $852 million in pre-tax COVID-19 claim costs, the segment’s diversified portfolio again proved resilient. Continued strong performance in group, individual health, and asset-intensive business lines partially offset individual mortality claims. Increased consumer demand for insurance protection drove new business growth. Assumed new business volume totaled $131 billion, an increase of 14%, while total revenues grew by 12% to reach $8.7 billion.
Within individual mortality, all specialties stepped up to address increased volumes and changing client needs. U.S. and Latin America underwriters reviewed a record number of facultative cases in 2021 – more than 124,000 – and enabled insurers to issue more policies faster through RGA’s Strategic Underwriting Program (SUP). It was a transformative year in underwriting as RGA further embraced a more flexible digital ecosystem, brought RGAX underwriting services into greater strategic alignment, and launched a series of innovations:
- FAC Exchange – enables insurers to electronically send facultative cases to multiple insurers at once and reinsurers to send back decisions and quotes.
- FAC Optimization – incorporates machine learning, optical character recognition, and natural language processing technology into the facultative underwriting process.
- ASAP Infinity – provides instant decisions online for select impaired risks and applies project management technology to direct more complex cases to human underwriters.
U.S. group business continued to deliver strong results in 2021 through a proven strategy of consistent pricing, disciplined risk management, and value-added services. MedScore, an automated risk assessment tool, provided clients with medical risk scores predictive of future insurance claims. For health insurers, RGA proactively addressed the looming challenge of gene therapy and its associated costs, leading an industry-wide dialogue on this urgent issue. Amid high volumes driven by COVID-19, the medical claims team launched a successful program to increase efficiency and accelerate claims turnaround time.
It was a transformative year in underwriting as RGA further embraced a more flexible digital ecosystem, brought RGAX underwriting services into greater strategic alignment, and launched a series of innovations.
The U.S. Individual Health business maintained a disciplined portfolio management strategy and generated strong earnings in 2021. While the industry environment remained challenging, RGA continued to explore emerging opportunities to help clients bring new solutions to market and innovative ways to serve the growing elderly population.
Global Financial Solutions (GFS) built on its competitive advantage within an expanding U.S. market to generate $515 million in pre-tax income in 2021. Growth in asset-intensive business was especially strong, highlighted by a large annuity reinsurance transaction with a major member-owned fraternal financial services organization. Despite market dynamics limiting opportunities, both the capital solutions and stable value teams generated new business growth. GFS continued to build capacity and leverage global longevity expertise to bring new de-risking opportunities to clients in the emerging U.S. pension risk transfer market. RGA ended the year with a robust pipeline of potential transactions across all GFS lines.
Latin America operations strengthened its leadership position by enabling client partners to reach underserved consumers across all markets, generating $270 million in revenues in 2021, more than doubling the total from 2020. A commitment to digital strategies and innovative solutions helped produce differentiated health reinsurance services, including an award-winning diabetes management product. For the 11th consecutive year, ceding companies ranked RGA #1 on NMG Consulting’s All Respondent Business Capability Index in Mexico.