1. Equitable Holdings reinsures 75% of its individual life block. 2. Deal with RGA strengthens risk management for future stability.
The reinsurance deal enhances capital efficiency and reduces underwriting risk, echoing similar historic moves that bolstered market confidence and long-term stability in the insurance sector.
This deal is significant for EQH's risk management strategy and long-term financial health, though it may not trigger immediate price swings.
Reinsuring a large block of business stabilizes earnings over time, as seen in past reinsurance agreements that improved future profitability.