Citigroup announced that a subsidiary of Swiss Re Life & Health America Inc. (“Swiss Re”), replaced Prime Reinsurance Company, Inc. (“Prime Re”) as Primerica Life Insurance Company’s reinsurer on a coinsurance agreement covering a block of term life insurance policies that were in force on December 18, 2009.

The transaction closed today and resulted in a reduction of approximately $2.5 billion of assets from Citi Holdings’ balance sheet. Prime Re, a subsidiary of Citigroup Inc., is reported by Citigroup as a part of Citi Holdings, which consists of businesses and portfolios of assets that Citigroup has determined are not central to its core franchise.

The coinsurance agreement represented the majority of Citigroup’s remaining reinsurance activities with Primerica, Inc. ("Primerica") following Primerica’s initial public offering and ultimate separation from Citigroup.

Following the transaction, Primerica Life Insurance Company will continue to conduct business with Prime Re and certain other Citigroup affiliated reinsurers on other reinsurance agreements executed prior to Primerica’s IPO.

Swiss Re Americas President and CEO J. Eric Smith said, "This transaction underscores Swiss Re’s continued commitment to strengthening our relationship with Primerica. We look forward to extending our business partnership with Primerica and Citigroup."

Primerica CFO Alison Rand said, "We are delighted to expand our relationship with Swiss Re in an arrangement that affords us substantially the same or better protections and collateralization as our prior reinsurance transaction with Prime Re and Citi."

Citi Holdings CEO Francesco Vanni d’Archirafi said, "This transaction represents another key step for Citi Holdings. We appreciate our long-standing productive relationship with Primerica and Swiss Re."

Since its creation, Citigroup has reduced assets in Citi Holdings by more than $700 billion. As of December 31, 2015, Citi Holdings’ assets represented approximately 4 percent of total Citigroup assets, down from a peak of about 40 percent.

Citigroup’s Institutional Clients Group advised Citigroup on this transaction. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Citigroup. DLA Piper LLP (US) served as legal advisor to Primerica.