Transamerica Reinsurance Enters European Life Reinsurance Market

Business Wire, Oct 18, 2006

CHARLOTTE, N.C. & CANNES, FRANCE -- Transamerica Reinsurance, an operating unit of Transamerica Occidental Life Insurance Company (TOLIC) and part of the AEGON Group since 1999, has established a branch office for its entry into the European life reinsurance market. One of the largest global suppliers of automatic and facultative life reinsurance capacity, Transamerica Reinsurance is also a leading reinsurance provider of product development, private label solutions and alternative underwriting solutions.

From its office in Paris, Transamerica Reinsurance plans to market a range of risk management, financing, product development and distribution solutions to life insurance companies in the European Union (EU) states. In addition to the Paris office, the reinsurer has a presence in the EU through its Dublin-based affiliate, Transamerica International Reinsurance Ireland Limited, which was formed in 2002.

"Our decision to expand into Continental Europe reflects our view that changing market conditions can create new opportunities for life insurance organizations and reinsurers, and we are well positioned to help make this happen," says Paul E. Rutledge, president of Transamerica Reinsurance. "This move is consistent with our strategy of achieving steady organic growth by providing high value solutions that can strengthen our clients' competitive and financial position."

Rutledge identifies increased competition, shifting demographics and the transition to Solvency II as major challenges facing life insurance companies in Western Europe. "We can help companies address a number of emerging needs with traditional life reinsurance solutions and the value added services that Transamerica Reinsurance is known for in our other life reinsurance markets," Rutledge said. He also emphasized that the new branch office will be supported by their entire reinsurance organizational structure.

Clients of Transamerica Reinsurance benefit from the reinsurer's strong and stable financial position. Its European business will be underwritten by Transamerica Occidental Life Insurance Company (TOLIC), which earns high ratings from the leading ratings agencies, including Standard & Poor's (AA), Moody's (Aa3), Fitch (AA+) and A.M. Best (A+). At year end 2005, TOLIC reported assets of EUR 23.7* billion, liabilities of EUR 21.7* billion, and shareholder equity of EUR 2.0* billion.

Another important benefit clients can rely on is a highly experienced staff that operates close to clients to provide local expertise and relationship management. Patrick Sabau serves as Director of the French Market. Mr. Sabau has more than 25 years of experience in the French life reinsurance market, holding senior management positions in business development, pricing and actuarial, and treaty administration.

"Transamerica Reinsurance's business model is well-suited to meet certain critical needs in the market such as new product development, alternative distribution, financing and risk management," Mr. Sabau said. "I have been involved in the reinsurance market in France for many years, and I believe Transamerica Reinsurance's portfolio of high value solutions will be most beneficial to the industry during these changing times."

Another key executive in Transamerica Reinsurance's European office is Rejean Besner, Chief Actuary and Deputy CFO of the European market. Besner has nearly 25 years of experience as a practicing actuary in four countries, including 13 years of experience in the reinsurance industry and 11 as consulting actuary to primary insurers. He currently represents the U.S. Society of Actuaries (SOA) on the reinsurance committee of the International Actuarial Association.

"We are happy to be here and are very optimistic about the prospects of the European market," Mr. Besner said. "Our goal is to help companies grow their business and improve their profit margins. We hope, as a result, to be well-known and well-respected in the market within 2-3 years."

About Transamerica Reinsurance

Transamerica Reinsurance, an operating unit of Transamerica Occidental Life Insurance Company (TOLIC), is one of the largest suppliers of automatic and facultative life reinsurance capacity. TOLIC ranks among the top ten life reinsurance companies in the world based on gross premiums written, according to Standard & Poor's 2005 survey of global reinsurers. In the United States, TOLIC ranks among the top five largest life reinsurance companies based on new business and inforce volume (policy face amount), according to the 2006 Society of Actuaries (SOA) study of business written in 2005. This study is conducted for the SOA by Munich Re.

Transamerica Reinsurance serves more than 500 client companies in North America, Asia Pacific and Latin America. Its main marketing office is located in Charlotte, North Carolina, USA. In addition to the French office, which supports its European business, Transamerica Reinsurance maintains an Asia Pacific regional management office in Hong Kong and a Latin America regional management office located near Miami, Florida, USA.