Reinsurance Group America (RGA) will acquire, through co-insurance, the US life reinsurance business of Allianz Life. In a deal announced last week, RGA will pay Allianz Life $463 million in ceding commission, making RGA the second biggest life reinsurer in the US.

The move will further strengthen RGA’s position in the US market, adding about $357 billion of life reinsurance and up to $670 million in annual premiums.

Mark Zesbaugh, Allianz Life’s CEO for North America, said while reinsurance has been a significant part of Allianz Life for 35 years, the RGA transaction will allows the Allianz group to focus on “core markets”.