Swiss Re's dominance of the UK reinsurance market is to be challenged by
world top five player Reinsurance Group of America.
RGA says it wants to hook up with “aggressive” life companies such as
Prudential if its application for a trading licence is successful and sees
IFAs as an essential part of the business chain.
The licence is due to come through in two to three weeks, allowing RGA to
start trading from offices in the former NatWest Tower.
RGA, which has its head office is in St Louis, Missouri, is one of the top
five life reinsurers worldwide, according to Standard & Poor's, but is
currently unrepresented in Europe. Its core business is long-term
reinsurance. Total revenue last year was $1.34bn. It has total assets of
Unlike most reinsurers, the company will be marketing itself as a
centralised global player rather than one which relies on local
Managing director Perry Thomas says: “At the mom ent there is little
difference between products and little competition.
“But in future, if an IFA is dealing with a big risk, for instance, when a
firm is in ill-health, they could look at which insurer is backed by which
reinsurer and perhaps chose the life office on the basis of this.”