Canada Life Reinsurance Shifts Focus to Structured Reinsurance, Halting U.S. Mortality Risk Business

Canada Life Reinsurance Adjusts Strategy for Growth

In a noteworthy shift, Canada Life Reinsurance, a subsidiary of Great-West Lifeco Inc., has announced its decision to discontinue new business in the U.S. traditional life mortality risk reinsurance sector, often referred to as U.S. Trad Life. This strategic move is designed to strengthen its focus on structured reinsurance solutions, thereby reallocating resources to align with market demands and opportunities.

As part of this transition, Canada Life Reinsurance will cease taking on new business for U.S. Trad Life clients effective December 31, 2025. Despite this cessation, the company remains committed to managing its existing clients and will ensure a smooth transition process for all current treaties. By doing so, Canada Life Reinsurance aims to maintain high service standards and support their clients effectively during this period of change.

Jeff Poulin, Executive Vice-President of Reinsurance, articulated the reasoning behind this decision, stating, "This carefully considered decision will allow Canada Life Reinsurance to focus on our core markets of structured solutions, longevity reinsurance, and Catastrophe retrocession." This indicates a strategic pivot towards specialized solutions that resonate well with ongoing market needs.

Business Strategy Reinvigorated

The decision to focus on structured reinsurance comes as part of a broader initiative to enhance the efficiency and effectiveness of reinsurance offerings. Canada Life Reinsurance provides a diverse range of capital and reserve financing solutions across multiple asset classes and global markets. The structured reinsurance market, which combines elements of traditional reinsurance with investment frameworks, offers significant potential for growth and increased client satisfaction.

The company will continue to offer reinsurance solutions across a variety of products, including life, annuity/longevity, mortgage surety, and property catastrophe reinsurance. Operating in regions such as the U.S., Barbados, Bermuda, and Ireland, Canada Life Reinsurance stands at the forefront of innovative risk management strategies that cater to the sophisticated needs of contemporary financial markets.

Commitment to Existing Clients

For existing U.S. Trad Life clients, Canada Life Reinsurance has committed to working closely with them to ensure that all ongoing business is handled with the utmost care. The company plans to issue notices to clients affected by the changes, keeping them informed of the transition process and offering support as they navigate this new landscape. The aim is to uphold the trust and relationships built with its clients over the years.

The strategic withdrawal from the U.S. Trad Life segment reflects the company's dedication to adapting its business model in response to evolving market conditions, while still prioritizing client needs and expectations. This transition is expected to enable Canada Life Reinsurance to optimize its resources, enhancing its capacity to deliver innovative structured solutions to a wider array of clients.

About Canada Life Reinsurance

Canada Life Reinsurance is recognized for its commitment to providing cutting-edge risk and capital management solutions. As a key player in the reinsurance market, it offers unique insights and tailored solutions that assist partners in managing risk effectively. The company is a division of The Canada Life Assurance Company and operates as a member of the broader Great-West Lifeco Inc. network, which aims to create financially secure futures for clients across North America and Europe.

Great-West Lifeco has built a reputation for financial strength, managing over $3 trillion in client assets. By focusing on the future of insurance and reinsurance markets, Canada Life Reinsurance is poised to emerge as a leader in risk management solutions, meeting the demands of an ever-evolving financial landscape.

This strategic pivot from traditional mortality risk reinsurance to structured solutions may signal a transformative era for Canada Life Reinsurance, aligning with the industry's move towards more dynamic and adaptable business models that can respond to market changes with agility.

Overall, Canada Life Reinsurance's recent strategic updates underscore a commitment to enhancing its customer relationships and targeting innovative solutions that drive growth, reflecting an industry-wide shift towards dynamic risk management strategies.