As Transamerica Reinsurance prepares for 2006, we plan to put a special emphasis on visiting and discussing with our customers the challenges they face in their markets and with their reinsurance relationships. Too often we think about our business agreements as the long and tedious work around treaties, a lot of “what ifs,” and how we can protect ourselves from the things we do not want to happen. But wouldn’t we be better served by mutually shifting our focus to a vision of results we each want to produce rather than the disasters we want to avoid?

Structuring our relationships and agreements for desired results gives us the opportunity to improve both the process and the actual agreement. With this as the guiding principle, we will gain better understanding and consensus with respect to risk pricing, costs of business, data reporting, underwriting and claims expectations as well as other terms and conditions important in managing to desired results.

Value Creation.  At Transamerica Reinsurance, we strive for insight into our customers’ business objectives and challenges. This insight is the basis of our investment in capabilities and product offerings that provide the greatest value to our customers. In 2006, we will focus on solutions that our customers tell us are most important to them.

As an industry leader in mortality risk management and the funding of reserve redundancy, we will continue to support our customers by providing competitively priced reinsurance solutions that deliver more value than other risk and capital management options.

Additionally, through value-added services that attach to our core life reinsurance offering, we are helping our customers change their business model to become more effective and profitable in their markets.

New Solutions. Innovation is the key to progress. At Transamerica Reinsurance, we continually look for ways to renew the value of our core life reinsurance offering. For example, by accessing capital markets, we enhance the capital efficiencies as well as the sustainability of our Triple X solutions. 

Recent technology advances have revolutionized the flexibility of our private label solutions for term life, enabling our customers to choose from a continuum of services, from basic product development to fully-outsourced, private labeled term with third-party administrator services. Our internet-based service infrastructure lets customers outsource major components of their term program while retaining pieces that are their core strengths. For instance, many primary insurers prefer to retain producer and client facing functions like underwriting and policy administration.

Technology also drives VELOGICA^SM , our integrated underwriting system for companies who seek to profitably sell term life in the middle market. VELOGICA allows for nearly instantaneous, non-invasive underwriting through the use of prescription drug data and other data sources. Our investment in VELOGICA demonstrates our commitment to helping our customers achieve success in both traditional and alternative life insurance markets.
 
Full-Service Support. At a time when full service reinsurers are becoming very hard to find, Transamerica Reinsurance has redoubled our commitment to full-service support. Facultative underwriting is an increasingly valuable and distinctive competency, and it will continue to be an important area of focus and investment for us. Our customers also can rely on us for expert advice and consultation on a range of risk pricing and underwriting issues.

As a committed, long-term partner in the life reinsurance market, Transamerica Reinsurance welcomes new and innovative ways to help our customers improve the economics of their business.