Citi has completed the sale of Financial Reassurance Company 2010, Ltd. (“FRAC”), a special purpose financial insurance company, to a subsidiary of Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft (Munich Re).
FRAC reinsures a block of term life insurance policies issued by Primerica Life Insurance Company of Canada, a subsidiary of Primerica which were in force as of December 18, 2009.
The transaction resulted in a reduction of approximately $460m of assets from Citi Holdings’ balance sheet.
FRAC was reported 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. Financial terms of the transaction were not disclosed.
Citi Holdings CEO Francesco Vanni d'Archirafi said: "This transaction is a positive outcome for Citi and joins this business with an industry leader, Munich Re. It also represents yet another step in our strategy to reduce the assets and businesses in Citi Holdings."
Citi's Institutional Clients Group advised Citi on this transaction. Skadden, Arps, Slate, Meagher & Flom, Primmer Piper Eggleston & Cramer PC and Blake, Cassels & Graydon served as legal advisors to Citi.