Hannover Re Buys ING's Life Portfolio from Scottish Re

January 23, 2009

Hannover Re is buying a life insurance portfolio of ING Groep from Scottish Re to become the fifth-biggest individual life reinsurer in the United States, the company said on Friday.

While Hannover Re did not say what it paid for the business, it said the portfolio was expected to generate a premium volume of around $1.2 billion this year.

The business, which was originally acquired by Scottish Re in 2004, would help reduce Hannover Re's dependence on the volatile non-life sector and would be accretive to net income this year.

The acquisition comprises both fresh reinsurance agreements with ING and the purchase of Scottish Re's systems to administer the policies.

Hannover Re said it was buying all operating assets required to run the business from Scottish Re and would also employ an unspecified part of the UK company's staff.

The German reinsurer said it would not require any external funding for the deal, which it expected to close in the first quarter of this year.

(Reporting by Maria Sheahan; Editing by Mike Nesbit)