Hannover Re Buys US Life Reinsur Portfolio From Scottish Re
23 Januar 2009 - 9:26AM
Dow Jones News
Germany's Hannover Re AG (HNR1.XE), one of the five largest
reinsurers worldwide, Friday said it is buying a U.S. individual
life reinsurance portfolio from reinsurer Scottish Re (SKRRF) in a
reinsurance and asset purchase transaction.
As part of the transaction, Hannover Re will also buy policy
administration systems from Scottish Re, and other assets
supporting the U.S. life reinsurance business.
Hannover Re said it won't need external funding to complete the
transaction, that the acquisition of the portfolio will be
net-profit accretive from 2009 and that the transaction is expected
to close in the first quarter.
The U.S. life reinsurance portfolio, dubbed ING Business, was
originally bought by Scottish Re from ING Groep NV (ING) in a
reinsurance transaction effective Dec. 31, 2004.
In 2009, this business is expected to generate a premium volume
of around $1.2 billion and will result in Hannover Re moving up to
the number five position in terms of individual life reinsurance
in-force in the U.S., it said.
"This is a transformational step for our global life reinsurance
ambitions," said Hannover Re Chief Executive Wilhelm Zeller. "It
contributes a large block of business in force, together with
industry-leading capabilities in mortality research, pricing,
underwriting and reinsurance administration which will
substantially increase our presence and earnings from the U.S.
mortality risk market ..."
Company Web site: www.hannover-re.com
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com
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