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Life Reinsurance Market
Life reinsurance will continue to grow
The amount of new U.S. ordinary life insurance business ceded to reinsurers has grown CAGR of 20% since 1994.
The top 5 large companies control a majority of the Life Re market.
2008 In Force
| Rank | Company | Reinsurance In Force | Market Share |
|---|---|---|---|
| 1 | Swiss Re | 1,721,925 | 22.6% |
| 2 | RGA Re. Company | 1,255,436 | 16.4% |
| 3 | Transamerica Re | 916,993 | 12.0% |
| 4 | Scottish Re (US) | 905,186 | 11.9% |
| 5 | Munich Re (US) | 719,122 | 9.4% |
| 6 | Generali USA Life Re | 409,383 | 5.4% |
| 7 | Hannover Life Re* | 356,340 | 4.7% |
| 8 | Employers Re. Corp. | 308,236 | 4.0% |
| 9 | SCOR Global Life (US) | 271,695 | 3.6% |
| 10 | Canada Life | 204,627 | 2.7% |
| 2008 Top 5 | 5,518,662 | 72.3% | |
| 2009 Top 10 | 7,068,943 | 92.6% |
2009 In Force
| Rank | Company | Reinsurance In Force | Market Share |
|---|---|---|---|
| 1 | Swiss Re | 1,706,608 | 22.1% |
| 2 | RGA Re. Company | 1,326,675 | 17.2% |
| 3 | Transamerica Re | 957,959 | 12.4% |
| 4 | Hannover Life Re* | 820,732 | 10.6% |
| 5 | Munich Re (US) | 746,042 | 9.7% |
| 6 | Generali USA Life Re | 448,451 | 5.8% |
| 7 | Canada Life | 349,557 | 4.5% |
| 8 | Scottish Re (US) | 302,002 | 3.9% |
| 9 | SCOR Global Life (US) | 277,983 | 3.6% |
| 10 | Employers Re. Corp. | 265,984 | 3.4% |
| 2009 Top 5 | 5,558,016 | 71.9% | |
| 2009 Top 10 | 7,201,993 | 93.2% |
Source: Society of Actuaries Reinsurance Surveys April 2010
The Market Opportunity Is Substantial
Many competitors have exited the life reinsurance business
Clear demand exists for additional players, which allows for ample volume even while focusing on conservative liabilities.
| Company | Year of Exit | Market Share* | Reason for Exit |
|---|---|---|---|
| ING Life Re | 2004 | 9.9% | Acquired by Scottish Re. |
| ERC Life Re | 2003 | 7.2% | Withdrew from market. Changed in GE (parent) strategy. |
| Allianz Life North America | 2003 | 4.4% | Acquired by RGA. |
| Guardian | 2003 | 1.0% | Ceased writing new business. |
| Gerling Global | 2003 | 2.4% | Withdrew from market. Parent company financial issues. |
| Annuity & Life Re | 2003 | 2.2% | Withdrew from market. Several toxic VA treaties written. |
| American United Life | 2002 | 3.7% | Acquired by ERC Life Re. |
| Canada Life | 2002 | 1.1% | Ceased writing new business. |
| Lincoln Re | 2001 | 11.4% | Acquired by Swiss Re. |
| World-Wide Re | 2000 | 1.0% | Acquired by Scottish Re. |
| C.N.A. Life Re | 2000 | 3.5% | Acquired by Munich Re. |
| CIGNA Corp. | 2000 | 0.4% | Acquired by Swiss Re. |
| Partner Re Life U.S. | 2000 | 1.0% | Acquired by SCOR. |
| Phoenix Home Life Re | 1999 | 3.9% | Acquired by ERC Life. |
| Life Re | 1998 | 6.8% | Acquired by Swiss Re. |
| M&G Re | 1996 | 3.3% | Acquired by Swiss Re. |
*Market Share based on in force in year of exit
Source: Society of Actuaries Reinsurance Surveys
Source: Society of Actuaries Reinsurance Surveys