The transaction allows FBBRC II to provide reserve credit to Banner Life for Regulation XXX reserve requirements on a block of level premium term life insurance business

Banner Life Insurance Company (Banner Life), a subsidiary of Legal & General America and a member of the Legal & General Group, and Calyon, the Corporate and Investment Banking arm of the Credit Agricole Group, have announced a $300 million reserve financing transaction.

Legal & General America has completed a Regulation XXX reserve financing transaction for its subsidiary, Banner Life Insurance Company. The $300 million transaction was arranged by Calyon. Reinsurance credit is provided by First British Bermuda Reinsurance Company II (a wholly-owned Legal & General America reinsurance captive subsidiary) to Banner Life through a letter of credit issued by Calyon.

The transaction allows First British Bermuda Reinsurance Company II (FBBRC II) to provide reserve credit to its parent company, Banner Life, for Regulation XXX reserve requirements on a block of level premium term life insurance business. The transaction was successfully executed and provides a cost effective solution for Regulation XXX requirements in the US. Calyon acted as Sole Structuring Agent and Sole Lead Arranger. The financing covers a portfolio of 10, 15, 20 and 30 year level premium term products to be originated by Banner Life during 2009 and 2010.

Banner Life is the flagship of Legal & General Group in the US and is licensed to sell individual traditional life, universal life and annuity products in every state except New York.