Pacific Life Insurance Company and Scottish Re Group have signed a definitive agreement whereby Pacific LifeCorp, the parent company of Pacific Life, will purchase the international life reinsurance segment of Scottish Re Group.
The new operation, to be called Pacific Life Re, provides reinsurance solutions to insurance and annuity providers in the UK and Ireland and to insurers in selected markets in Asia.
The purchase price is $71.2 million, subject to certain potential downward adjustments. Other terms of the purchase agreement were not disclosed. The transaction is subject to regulatory approvals and other customary closing conditions, both of which are expected to be achieved during the third quarter of 2008.
As part of the agreement, the current management of the acquired companies will remain intact. Pacific Life Re, which will report to Mary Brown, Pacific Life’s senior vice president of corporate development, will be headed by David Howell and an executive team of seven professionals with a combined 160 years of insurance and reinsurance experience in the UK, Canada, and Asia.
Jim Morris, chairman, president and CEO of Pacific Life, said: The purchase of Scottish Re’s international business is a great opportunity for Pacific Life. Scottish Re’s international business has great growth potential and this transaction provides Pacific Life a practical way to access the growing UK and Asian markets.