ST. LOUIS--(BUSINESS WIRE)--Dec. 16, 2014--
Reinsurance
Group of America, Incorporated (NYSE: RGA) announced today that its
subsidiary, Chesterfield Financial Holdings LLC, has completed an
offering of US$300 million of 4.50% asset-backed notes, a securitization
of U.S. life insurance embedded value. The transaction covers a closed
block of policies assumed by RGA Reinsurance Company (“RGA Re”), a
wholly owned indirect subsidiary of RGA, between 2006 and 2010. RGA
expects to use the net proceeds from the offering for general corporate
purposes.
Jack Lay, Senior Executive Vice President and Chief Financial Officer of
RGA, commented, “We are continually looking for ways to enhance our
capital flexibility and efficiency, and this transaction is an
attractive option in that regard. In addition, the transaction
highlights and monetizes a portion of the embedded value that exists
within our broad portfolio of mortality risk. The proceeds will be
incorporated into our ongoing capital management plans.”
The transaction includes a single tranche rated A- (sf) by Standard and
Poor’s. The notes have an average life of 4.7 years.
Principal repayment on the notes is linked to the emergence of future
profits on a closed block of yearly renewable term reinsurance business,
consisting of approximately 600 reinsurance treaties underwritten by RGA
Re from over 100 separate life insurance groups.
RGA, through an intermediary holding company, has formed Chesterfield
Financial Holdings LLC and its wholly-owned life insurance company
subsidiary, Chesterfield Reinsurance Company. Both entities were formed
for the limited purpose of completing the notes offering.
Independent third-party analysis of the cash flows under various
scenarios for the notes was provided by Towers Watson.
Credit Agricole Securities, a subsidiary of Credit Agricole Corporate
and Investment Bank, was the structuring lead and sole book runner on
the transaction. The Chesterfield Financial Holdings LLC notes have not
been and will not be registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
The notes are being sold, and may be reoffered and resold (A) in the
United States, only to investors who are “Qualified Institutional
Buyers” (as defined in Rule 144A under the Securities Act (“Rule 144A”),
and (B) in “Offshore Transactions” to persons other than “U.S. Persons”
(each as defined in Regulation S under the Securities Act). This news
release does not constitute an offer to sell or the solicitation of an
offer to buy the notes.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA), one of the
largest global life reinsurance companies in the world, provides clients
with individual life reinsurance, individual living benefits
reinsurance, group reinsurance, health reinsurance, financial solutions,
facultative underwriting and product development. The company serves
clients from operations in Australia, Barbados, Bermuda, Canada, China,
France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia,
Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa,
South Korea, Spain, Taiwan, Turkey, the United Arab Emirates, the United
Kingdom, and the United States. Worldwide, RGA has approximately $2.9
trillion of life reinsurance in force and assets of $42.9 billion.
Source: Reinsurance Group of America, Incorporated
Reinsurance Group of America, Incorporated
Jeff Hopson, 636-300-6106
Senior
Vice President, Investor Relations
jhopson@rgare.com
or
Sally
Smith, 636-736-8167
Vice President, Corporate Communications
ssmith@rgare.com
