Industrial Alliance Insurance and Financial Services have inked a deal to offload by way of indemnity reinsurance and assumption reinsurance, all its US fixed annuities and accumulation riders to Security Benefit Life Insurance and Equitrust Life Insurance.
Both acquirer firms, which are affiliates of US based Guggenheim Partners, have not disclosed the terms and conditions the deal.
The agreement evolves nearly $800m in contract liabilities and related assets, was carried out through the US branch and the US subsidiaries of Industrial Alliance.
Under the terms of the agreement, most of the assets have been transferred, except for a fraction that is provisionally kept by the ceding entities on a funds withheld basis, the seller said.
Industrial Alliance Insurance said that its decision to sell annuity business will enable it to concentrate in the US on the continued development of its life insurance business.
The company purchased American-Amicable platform in 2010, and since then has been expanding the US life business, while reducing cost and boosting overall profitability of Industrial Alliance.