Reinsurance Group of America, Inc. (NYSE:RGA) is the second-largest life insurance reinsurer in the United States.^[1] Reinsurance is an arrangement in which the reinsurer, agrees to take on risks another insurance company, the “ceding company,” for a percentage of the premiums paid on the original policy (for specifics, see Reinsurance). In addition to traditional life reinsurance, RGA also offers critical illness and financial reinsurance. The company's international exposure makes the company vulnerable to foreign currency exchange risk as the the dollar fluctuates in value relative to the Euro, the Canadian dollar, the British Pound, etc.

The subprime crisis and and the accompanying downturn in the U.S. economy, and falling interest rates combine to form a toxic cocktail for reinsurers like RGA. During times of economic hardship, individuals tend to redeem policies and investments in larger numbers. Meanwhile falling interest rates can mean that RGA's own investments produce lower returns. In such situations, insurers like RGA do not always have enough cash on hand, and have to resort selling their less liquid assets at loss to cover their obligations.

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