French Reinsurer SCOR will be acquiring Transamerica Reinsurance mortality portfolio, a division of Aegon, including the operational assets and personnel for more than $1bn following approvals from relevant regulatory authorities.
Dutch insurer Aegon said the deal was finalised with $900m paid in cash and a further $500m in released capital.
Aegon’s said the disinvestment of Transamerica Reinsurance is part of its strategy to focus on life insurance, pensions and asset management business as well as to improve its risk-return profile.
SCOR believes that the deal meets its objectives in terms of profitability and solvency, as per its Strong Momentum strategic plan for the period 2010-2013.
The acquisition represented a gross premium volume of $2.2bn in 2010, of which 87% was underwritten in the US and strengthens SCOR Global Life’s position in the life reinsurance markets, especially US, according to SCOR.
The SCOR Global Life and Transamerica Re activities in the US have been combined into a single new SCOR Global Life Americas entity.
Transamerica Re president Paul Rutledge will join SCOR’s Executive Committee.