Hannover, 18 April 2011:
Hannover Re has reached agreement with Scottish Re (US) on the acquisition of a reinsurance portfolio as part of a transaction.
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% assumed by Hannover Re with effect from 1 January 2011.
The business is expected to generate an annual premium volume of around USD 80 million. Hannover Re is to assume the technical liabilities associated with the portfolio and will in return receive the necessary assets from Scottish Re.
"This transaction superbly complements our acquisition of the ING life reinsurance portfolio in 2009 and further strengthens our traditional US life business", Ulrich Wallin, Chief Executive Officer of Hannover Re, emphasised.
The transaction, which is expected to close in May 2011, still requires regulatory approval and is therefore subject to the customary reservations.