19 January 2021News

Prosperity completes reinsurance deal with National Western Life

Prosperity Life Assurance, the Bermuda-based reinsurer, has executed an annuity reinsurance transaction with National Western Life Insurance Company (NWLIC).

The transaction encompasses approximately $1.7 billion in fixed annuity reserves and expands NWLIC’s financial flexibility while providing new opportunities for incremental earnings.

NWLIC will continue to administer and service the policies included in the transaction.

The effective date of the transaction was December 31, 2020.

Ross Moody, chairman of NWLIC’s board and chief executive officer, said: "By reinsuring older fixed annuity business, we anticipate improving our already strong capital position and risk-based capital ratio as well as increasing our financial flexibility.”

NWLIC said the deal also supports its strategic commitment to enhancing its product portfolio management efforts and upgrading its technology platforms to support its business operations.

NWLIC is a wholly owned subsidiary of National Western Life Group.