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RGA targets full deployment of Ruby Re sidecar capital in 2026
RGA said its first third-party capitalised life reinsurance sidecar Ruby Re was backed by investors and had raised $480 million of its $400 million to $500 million target by November 2024.
Reinsurance Group of America expects its first third-party capitalised life reinsurance sidecar, Ruby Re, to be fully deployed this year, and it is already evaluating a second iteration of the structure, according to Artemis.
RGA launched Ruby Re in December 2023, aiming to underwrite US asset-intensive life reinsurance business via the sidecar, with backing that included insurance-linked securities specialist Hudson Structured Capital Management at launch.
Artemis reports that RGA targeted $400 million to $500 million in capital for Ruby Re, and after the close of its second funding round it said the sidecar had raised $480 million by November 2024.
The company retroceded a block of $2.5 billion of existing liabilities to Ruby Re, and Artemis notes that RGA had a ceded reinsurance coverable of $4.5 billion from the sidecar by the end of 2025, which had fallen to $4.1 billion as of the end of June. RGA said it earns fee income tied to the sidecar and expects the Ruby Re strategy to be fully deployed this year, while future sidecars are already planned.