Germany’s Hannover Re, the third largest global reinsurer, has reached agreement with Scottish Re (US) on the acquisition of a reinsurance portfolio as part of a transaction. The other part involves the transfer of a block of term life policies.
The acquired portfolio covers the mortality risk under term life and endowment policies that were reinsured by Scottish Re in the underwriting years 2000 to 2003. The business is 100 percent assumed by Hannover Re as of January 1, 2011.
“The business is expected to generate an annual premium volume of around $80 million,” said the bulletin. “Hannover Re is to assume the technical liabilities associated with the portfolio and will in return receive the necessary assets from Scottish Re.”
Hannover Re’s CEO Ulrich Wallin noted: “This transaction superbly complements our acquisition of the ING life reinsurance portfolio in 2009 and further strengthens our traditional US life business.”
The transaction, which is expected to close in May 2011, still requires regulatory approval and is therefore subject to the customary reservations.
Source: Hannover Re
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