Voya Financial, a US-based financial and insurance firm, has reached an agreement to sell through reinsurance an in-force block of nearly 155,000 term life insurance policies to Reinsurance Group of America (RGA).
Voya Financial will continue to administer and service the policies, which represent about $90bn of life insurance in force backed by approximately $1.4bn of statutory reserves as of 30 June 2015.
Upon completion of the deal, Voya Financial’s insurance subsidiaries will have over 950,000 policies representing approximately $270bn of life insurance in-force backed by statutory reserves of $18bn as of 30 June 2015.
Voya Financial chairman and CEO Rodney O Martin, Jr., said: "This transaction supports our focus on improving returns in our Ongoing Business while also enabling us to free up more than $230m in excess capital.
"The transaction aligns with our focus on executing on growth, margin and – as in this example – capital initiatives as part of our plan to drive further improvement in Voya’s Ongoing Business Operating Return on Equity and create value for our shareholders."
The block of term life insurance products included in this transaction, which is subject to regulatory approval and other customary closing conditions, were issued by ReliaStar Life Insurance Company and ReliaStar Life Insurance Company of New York.
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