In a step aimed at reallocating capital toward future European transactions, Monument Re Ltd. has divested a €1.4 billion (US$1.5 billion) legacy life insurance portfolio to RGA Americas Reinsurance Company, Ltd., freeing up resources for targeted market activity.
The transaction, which closed on May 2, 2025, involves annuity and other life insurance liabilities originally acquired as part of Monument Re’s 2020 GreyCastle deal.
The portfolio transfer received approval from the boards of both companies, along with a non-objection from the Bermuda Monetary Authority.
Monument Re, a Bermuda-based life reinsurance and insurance holding company, said the divestment aligns with its strategy to consolidate European life insurance portfolios and provide capital and risk transfer solutions across regulated markets.
The group operates through subsidiaries in Belgium, Ireland, Luxembourg, and the Isle of Man, and maintains branches in Spain, Italy, Germany, and Singapore. It is subject to insurance group supervision by the Bermuda Monetary Authority, which enforces standards comparable to the European Union’s Solvency II framework.
The company has recently centralized its European group support functions in Dublin, part of what it describes as an operational shift to streamline internal resources.
With the release of capital from the transaction, Monument said it expects to enhance its flexibility in executing additional transactions in key jurisdictions.
“We are now focused on ensuring a smooth transition process for the benefit of policyholders,” said Monument Re Group CEO Carlo Elsinghorst. He described the engagement with RGA as having fostered mutual trust and emphasized Monument’s commitment to offering tailored solutions in European markets.
"Monument retains a very strong solvency position and the increased financial flexibility as a result of this transaction together with the recent rationalizing of group support functions will enhance our capacity to capitalize on our market leading, solutions-focused transaction capabilities," Elsinghorst added.
RGA’s Emma Ferris, senior vice president and managing director for the UK and Ireland, said the deal showcases the company’s ability to manage significant in-force transactions and deliver client-focused solutions.
“This transaction highlights RGA's ability to execute on significant in-force opportunities, and to provide innovative solutions to address the evolving needs of our clients,” said Ferris.
RGA posted a solid start to the year with first-quarter net income of US$286 million, or US$4.27 per diluted share, up from US$210 million and US$3.16 per share in the same quarter of 2024.
Financial advisers to Monument Re for the transaction were Citi and Fenchurch Advisory.
What do you think about Monument Re’s decision to reallocate capital through this transaction? Share your thoughts in the comments.
