Bermuda-based PartnerRe announced that it has reached an agreement with France’s SCOR Group to sell its U.S. life reinsurance business, PartnerRe Life Insurance Company of the U.S., and its subsidiaries Vanguard Life Insurance Co., Investors Insurance Corp. and Investors Marketing Group.
The move represents Scor’s return to the U.S. life and health reinsurance market. In the announcement PartnerRe President and CEO Herbert N. Haag said: “Based upon our evaluation of the strategic alternatives regarding the U.S. life reinsurance operations acquired as part of the purchase of Winterthur Re, we concluded that PartnerRe would concentrate its U.S. activities on advancing non-life initiatives.”
The company will, however, continue to develop its life reinsurance operations outside of the U.S. market, Haag added. In Paris SCOR Chairman and CEO Jacques Blondeau stated: “This acquisition, which is in perfect keeping with our development strategy, will enable us to make a significant entry into the world’s largest life reinsurance market and to enhance our achievements of the past years in this area of business.”
SCOR cited the growth of the annuity market, the strong demand for long-term care products and the recent changes in U.S. law, permitting bancassurance holding companies, as incentives to acquire PartnerRe Life. The acquisition, which is subject to regulatory approval, is expected to close by the end of end of June.
PartnerRe Life will add “$147 million to SCOR Group’s gross written premiums and $1.5 billion of managed assets.” “It complements SCOR’s strong presence in property & casualty reinsurance in the US market and its ranking among the top world reinsurers,” said the announcement.
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