Specialist life reinsurer Reinsurance Group of America (RGA) has reported net income for the third quarter of $74 million compared to $67.6 million in the prior-year quarter. RGA said third-quarter net premiums rose 11 per cent to $1,076.2 million, from $973.5 million a year ago while net investment income totalled $183.4 million versus $166.5 million the year before.

The figures beat market estimates and analysts at research firm Keefe Bruyette and Woods (KBW) pointed to strong growth and better than expected mortality in Asia-Pacific and also by better mortality in traditional US markets. KBW explained that these favourable developments were partially offset by misses in European and Corporate business segments.

The National Association of Insurance Commissioners' (NAIC) Reinsurance Evaluation Office (REO) proposal exposes US ceding companies to a lower level of security than under the existing collateral requirements, contains too many provisions that are not clearly defined and should not be approved by the NAIC's Reinsurance (E) Task Force during the December national meeting, according to the Property Casualty Insurers Association of America (PCI).

The Reinsurance Task Force was charged with developing alternatives to the current reinsurance regulatory framework, including the requirement of collateral to US ceding companies. It is also considering approaches that account for a reinsurer's financial strength regardless of state or country.