Texas-based National Western Life Insurance Company has announced the execution of an annuity reinsurance transaction with Aspida Life Re Ltd, a Bermudian-based reinsurer.

The transaction was effective July 1.

The reinsurance transaction is a strategic move designed to support plans previously announced by National Western Life to grow its business by expanding its distribution footprint and creating new market opportunities.

This includes bringing new products to market through exclusive, proprietary distribution channels, as well as banks.

"This reinsurance relationship helps us to better strengthen our position in the market as we prepare to launch several new products offering new and innovative solutions for the financial marketplace," said Chad J Tope, executive vice-president and chief marketing officer at National Western Life.

National Western Life said it had chosen Aspida Re based on its industry-leading investment expertise and strong financial strength ratings.

The partnership will improve National Western Life's product competitiveness, increase financial flexibility, and provide an opportunity for incremental earnings.

"The reinsurance transaction with Aspida Re allows us to continue our growth strategy in a smart, methodical way," commented Ross R Moody, chairman of the board and chief executive officer of National Western Life.

"Ultimately, this will drive our growth strategy by providing us with the ability to offer more compelling rates in the market."

Included in the transaction is reinsurance of an in-force block of National Western Life fixed-indexed annuities of $250 million.

National Western Life will continue to administer and service these policies ceded to Aspida Re.