Voya Financial (VOYA) was in early trading after it agreed to sell via reinsurance an in-force block of approximately 155,000 term life insurance policies to Reinsurance Group of America, Incorporated (RGA).

Voya Financial says it will continue to administer and service the policies, which represent approximately $90 billion of life insurance in force backed by approximately $1.4 billion of statutory reserves as of June 30, 2015.

The company says the transaction will create excess capital of approximately $230 million, reduce GAAP capital allocated to the company’s Individual Life business by approximately $270 million, reduce operating earnings in the segment by $4-6 million a quarter, and create an immediate non-operating pre-tax GAAP loss of $100 million to $110 million and a deferred non-operating pre-tax GAAP loss that the company expects to recognize at an average rate of approximately $12 million a year over the next 15 years.

Shares were down 0.5% at $41.27 in recent trade, in a 52-week range of $33.94 – $48.30. RGA was trading even.

Companies: Voya Financial
Price: 41.23 Price Change: -0.26 Percent Change: -0.63