Bermuda-based reinsurer Monument Re has agreed to acquire a run-off portfolio of flexible retail life insurance contracts from Belgian insurance firm Ethias.
Monument Re signed the agreement, which is subject to regulatory approval, via its Ireland domiciled subsidiary Laguna Life DAC.
The Irish subsidiaries of Monument Re trade as Monument Insurance in Ireland.Laguna Life DAC will now take over the responsibility of Ethias’ policyholderswithout changing the terms and conditions of their contracts. .
The transfer is saidto result in the loss of €100,000 savings guarantee in Belgium, where Ethias is based, as Ireland has no equivalent system.
After the transaction is completed, Monument plans to make a new surrender offer, with details to be revealed in due time.
Monument Re Group CEO Manfred Maske and Monument Insurance CEO Kieran Hayes said: “It has been a pleasure to work with Ethias on the divestiture of the First A portfolio. We continue to make progress executing our Benelux and Ireland consolidation strategies and firmly establishing our long-term presence in these key markets.”
The First A Portfolio transfer provides Monument Insurance with its second purchase after the integration of Laguna into the Monument Re Group and the acquisition of ABN AMRO Life Capital, Monument Re’s initial transaction in Belgium.
Ethias CEO Philippe Lallemand said: “It is a balanced agreement in which we have sought to ensure that the further management of this portfolio is carried out by a buyer specialized in the run-off management of life insurance products and who, as an Irish company, is also subject to the same European Solvency requirements as Ethias.
“The payment of the guaranteed returns on these contracts (i.e. 3.46% on average) should therefore not be affected by this transfer.”
Monument Insurance is planning a redemption campaign for about 4,400 remaining policyholders who have not responded to earlier switch campaigns undertaken by Ethias.
Image: Monument’s Irish subsidiary to take control of Ethias’ First A portfolio. Photo: Courtesy of adamr/FreeDigitalPhotos.net.