BUZZ-RGA jumps on $32 billion reinsurance deal with Equitable

Shares of life and health reinsurer Reinsurance Group of America RGA.N jump 6.3% to $201.29

RGA strikes $32 billion reinsurance deal with financial services firm Equitable Holdings EQH.N

Co will reinsure 75% of EQH's in-force life insurance business as part of the deal

Deal expected to contribute about $70 million of adjusted operating income before tax in 2025 to RGA, and about $200 million per annum over time

RGA will deploy $1.5 billion of capital into the reinsurance transaction, which is expected to close in mid-2025

Co anticipates raising capital in connection with the transaction through long-term debt

Goldman Sachs and Clifford Chance US advised RGA on the transaction

As of last close, RGA down 11.4% YTD