Reinsurance Group of America, Incorporated announced the launch of Ruby Reinsurance Company (Ruby Re), a Missouri-domiciled third-party life reinsurance company targeting U.S. asset-intensive business. Ruby Re has closed its first round of funding and secured equity capital commitments from lead investors Golub Capital, Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda), and Sammons Financial Group. Ruby Re will reinsure business from RGA and will not face clients directly.
Initially, RGA will retrocede a block of $2.5 billion of existing liabilities to Ruby Re, and Ruby Re will automatically receive a quota share from RGA of all future qualifying business (subject to certain conditions, such as meeting underwriting standards and regulatory approvals). Jefferies acted as financial advisor and Oliver Wyman provided actuarial support. Latham & Watkins acted as legal advisors to RGA and Sidley Austin were legal advisors to the lead investors.
Additional terms are not being disclosed at this time.