RGA launches Ruby Re
RGA announced the launch of Ruby Reinsurance Company, a Missouri-domiciled third-party life reinsurance company targeting US 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, 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).
“As a pioneer in the asset-intensive business, I am excited about the next step in our continuing support for this growing market segment. Ruby Re provides RGA with alternative capital that expands our capacity at attractive terms benefiting our clients, shareholders, and Ruby investors.” – Tony Cheng, president, RGA.
“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. We are delighted to be able to leverage our financing capabilities to support RGA’s continued growth.” – Gregory Robbins, vice chair of Golub Capital.
“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.” – Gokul Sudarsana, managing director and chief actuary, HSCM Bermuda.
“For decades, we have recognized RGA as one of our trusted partners and are excited to be a lead investor in Ruby Re. We are proud to continue to build upon our strong relationship in support of our long-term growth strategy.” – Esfand Dinshaw, Sammons Financial Group CEO.