Germany-based reinsurance firm Hannover Re has signed an agreement with Scottish Re (US) on the acquisition of a reinsurance portfolio as part of a transaction.

The German reinsurer said that 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.

According the Hannover Re, the business is 100% assumed by it with effect from 1 January 2011 and is expected to generate an annual premium volume of around 80m.

The reinsurer will assume the technical liabilities associated with the portfolio and will in return receive the necessary assets from Scottish Re.

Hannover Re CEO Ulrich Wallin said this transaction superbly complements the acquisition of the ING life reinsurance portfolio in 2009 and further strengthens its traditional US life business.

The transaction, which is expected to close in May 2011, requires regulatory approval and is subject to the customary reservations.