Monument Re Ltd has transferred a €1.4 billion ($1.58 billion) reinsurance portfolio to RGA Americas Reinsurance Company, freeing up capital to strengthen its focus on life insurance consolidation across Europe.

The legacy portfolio, acquired in the 2020 Greycastle transaction, includes annuity and other life insurance liabilities. The deal was finalised on May 2, following approval from both companies’ boards and without any objection from the Bermuda Monetary Authority.

Carlo Elsinghorst, the chief executive of Monument Group, described the transaction as a strategic shift that reinforces the company’s ability to grow in its core markets.

“RGA has a stellar track record in the industry and is ideally placed to take on this business,” he said. “We are now focused on ensuring a smooth transition process for the benefit of policyholders.”

Mr Elsinghorst added that the capital released by the transfer, along with recent internal restructuring and strengthened regulatory alignment in Bermuda, will allow Monument to expand its position as a specialist in acquiring and managing legacy life insurance portfolios.

Monument has also consolidated its European support functions in Dublin and remains under group supervision by the BMA.

Emma Ferris, the senior vice-president and managing director of RGA UK & Ireland, said the transaction “highlights RGA's ability to execute on significant in-force opportunities and to provide innovative solutions.”