Changing regulations, taxation and accounting rules make it difficult for companies to maintain the most effective risk and capital management programs. To stay on top of changing conditions, companies must constantly measure performance and explore new options. By investing in valuation and financing expertise plus multi-jurisdictional facilities and other resources needed to access capital markets, Transamerica Reinsurance is positioned to help life insurers execute high value, sustainable reserve management solutions. As part of AEGON, we have participated in the completion of multiple structured financing programs to provide reserve funding capacity for our clients. Through this activity, we have gained valuable knowledge and experience about what works, what doesn’t and the myriad of issues involved in accessing capital markets.

Triple X Reserve Financing
Since the advent of Regulation XXX, Transamerica Reinsurance has provided leadership in helping companies meet reserve requirements for guaranteed level term products. Our innovative coinsurance solutions optimize our mortality pricing expertise and financing capabilities. While a few large life insurers may implement their own alternative reserve strain solutions, most find that the benefits we can provide through reinsurance are extremely difficult to replicate.

Actuarial Support
Our valuation actuaries work closely with peers at client companies to ensure that assumptions and experience are aligned and that sufficient provisions are made for outstanding risk. Back-and-forth interaction and information sharing serve as a useful “checks and balance” function and prevent problems down the road. As the industry moves to principles-based regulations for setting capital and reserves, our valuation actuaries are working more closely than ever with our clients, reviewing experience data and analysis and assisting them in getting up to speed on new modeling requirements. Several of our actuaries work with industry groups and are playing an active role in the development of principles-based regulation. This involvement keeps us abreast of regulatory changes so that we can effectively support our clients. In addition to providing one-on-one support and writing articles about PBR in our client newsletters, our senior valuation experts conduct client seminars all across the country. Our 2007 Quest program covered background and key provisions of the new regulation as well as tactical impacts on product design and underwriting standards.

Principles-Based Regulation
The life insurance business is driven largely by how it is defined by the regulations that govern the industry. Small regulatory changes can have a significant impact on our clients’ business. Other more comprehensive changes such as principles-based regulations have the potential to change the very way we view risk.

Keeping abreast of regulatory changes is a top priority for Transamerica Reinsurance, enabling us to develop solutions that help our clients adapt to a changing environment. Our pricing and valuation experts are members of regulatory committees of the largest trade associations that analyze regulatory proposals. Our presence on these committees allows us to provide warning to our clients on upcoming considerations and what implications rules changes can have.