France’s SCOR Group announced that it has finalized the acquisition of the mortality portfolio, including the operational assets and personnel, of Transamerica Re, a division of The Netherlands-based AEGON.
SCOR said it “has obtained all the necessary approvals from the relevant regulators, notably the Texas Department of Insurance, the Delaware Insurance Department and the Central Bank of Ireland.”
Under the terms of the acquisition, announced April 26, 2011, SCOR paid a total consideration of $912.5 million, including a statutory equity of $497 million for the Irish entity as of the closing date. SCOR noted that it had financed the acquisition internally “without the issuance of new shares.”
AEGON has transferred to SCOR €1.2 billion ($1.7256 billion) of assets in cash and securities, and corresponding liabilities (numbers subject to customary closing adjustments). The asset portfolio transferred is made up of cash 55 percent cash and 40 percent investment grade corporate bonds, “selected individually by SCOR’s teams, with an average rating of ‘A-‘, and US Treasuries (less than 5 percent),” the announcement explained. “The portfolio has no exposure at all to US Agency or Municipal bonds.
“This transaction meets SCOR’s objectives in terms of both profitability and solvency, as set out in its strategic plan for the period 2010-2013, ‘Strong Momentum,'” the bulletin noted.
Source: SCOR Group
Topics Mergers & Acquisitions
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