Canada Life Reinsurance: A Shift in Strategy
Canada Life Reinsurance, a part of the Great-West Lifeco financial services holding company, has recently announced a strategic pivot in its operations. The reinsurer is discontinuing new business under its U.S. traditional life mortality risk reinsurance line, commonly referred to as U.S. Trad Life. This decision is rooted in the company’s desire to concentrate its efforts on core markets and areas with greater growth potential.
Focus on Core Markets
The decision to cease new U.S. Trad Life business was influenced by a broader strategy aimed at reallocating resources. Canada Life Re is looking to enhance its presence in structured reinsurance markets, which promise to hold more relevance and profitability in the evolving landscape of financial services. The company acknowledges that focusing on structured solutions, longevity reinsurance, and catastrophe retrocession will position it more favorably for future growth.
Management of Existing Business
While Canada Life Re is stepping away from new business in U.S. Trad Life, it is committed to managing, processing, and supporting all existing in-force business. Clients currently with open treaties for new business will receive notices to terminate such agreements effective December 31, 2025. The company assures its clients that it is dedicated to providing a seamless transition process. This proactive approach aims to maintain high service standards during this period of change.
Insights from Leadership
Jeff Poulin, Executive Vice-President of Reinsurance, highlighted the rationale behind this strategic decision. “This carefully considered decision will allow Canada Life Reinsurance to focus on our core markets of structured solutions, longevity reinsurance, and Catastrophe retrocession,” he stated. Poulin emphasized the importance of maintaining high service levels for clients with existing in-force blocks, reassuring them that Canada Life Re remains committed to meeting their expectations.
Geographic Presence and Future Focus
Operating primarily in regions like the U.S., Barbados, Bermuda, and Ireland, Canada Life Re has cultivated a diverse geographic footprint. Despite the cessation of new U.S. Trad Life business, the company is adamant about continuing to provide capital and reserve financing solutions across a wide range of product lines and geographies. This commitment underscores their resilience and adaptability in a constantly shifting market landscape.
Client-Centric Approach
As Canada Life Re shifts its focus, it is crucial to note that client relationships remain at the forefront of its strategy. The firm is aware that clients with existing policies expect the same levels of service that they have always received. This acknowledgment of client needs is essential for retaining trust and ensuring smooth operations as the company navigates this transition.
In summary, Canada Life Reinsurance’s decision marks a significant change in its operational focus, emphasizing a transition towards structured reinsurance solutions while continuing to support its existing customer base with dedication and commitment.
