Hannover Re will acquire the policy administration systems of Scottish Re
Hannover Re has signed an agreement to acquire certain U.S. individual life reinsurance business, previously reinsured from ING by affiliates of Scottish Re Group in a reinsurance and asset purchase transaction.
In addition to assuming the business directly from ING via fresh reinsurance agreements directly with ING, Hannover Re will acquire the policy administration systems of Scottish Re as well as other assets supporting the U.S. mortality reinsurance business.
The U.S. Individual Life Reinsurance Business or ING Business was originally acquired by Scottish Re in a reinsurance transaction in 2004. Hannover Re will assume all liabilities of the ING Business and will in turn receive assets to fund those liabilities from Scottish Re.
The acquisition includes all operating assets required to administer the ING Business. Hannover Re will also employ part of Scottish Re’s staff, thus ensuring operational continuity and a transfer of know-how.
The transaction, which is expected to close in the first quarter of 2009, is subject to regulatory approvals and other customary closing conditions.
Wilhelm Zeller, CEO of Hannover Re, said: This is a transformational step for our global life reinsurance ambitions. 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.