RGA has launched a third-party life reinsurer, Ruby Reinsurance Company (Ruby Re).

Ruby Re has already completed its first investment round and obtained equity capital commitments from Golub Capital, Sammons Financial Group and Hudson Structured Capital Management (HSCM).

The value of the investment was not disclosed.

Domiciled in Missouri, the new company will be focused on US asset-intensive business.

Ruby Re will not deal with clients directly, and provide reinsurance to businesses from RGA.

At the start, RGA will retrocede to Ruby Re a portion of its current liabilities totalling $2.5bn.

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Subject to certain conditions such as achieving underwriting standards and obtaining regulatory clearances, Ruby Re will receive a quota share from RGA of all qualifying businesses in the future.

RGA president Tony Cheng said: “Ruby Re provides RGA with alternative capital that expands our capacity at attractive terms benefitting our clients, shareholders, and Ruby investors.”

HSCM Bermuda managing director and chief actuary Gokul Sudarsana said: “We are excited to be partnering with RGA. The combined capabilities of Ruby Re, along with RGA’s outstanding reputation and underwriting, will allow us to quickly establish a dynamic new platform in the fast-growing, asset-intensive market,”

Golub Capital vice-chair Gregory Robbins said: “This is Golub Capital’s inaugural insurance capital sidecar transaction and is a culmination of a shared investment approach and valuable partnership with RGA since 2010.”

Jefferies served as the financial advisor to RGA, and Oliver Wyman assisted with actuarial work. Legal counsel was provided by Latham & Watkins.

Principal investors received legal counsel from Sidley Austin.

Established in 1973, RGA specialises in offering life and health reinsurance and financial solutions.

As of 30 September 2023, RGA had around $3.5trn worth of life reinsurance in force and assets worth $87.4bn.