Scor buy TaRe mortality business for $900 million
French reinsurer Scor said Tuesday it has agreed to buy Transamerica Re's mortality portfolio for 630 million euros ($900 million) which will make it the second-largest life reinsurer in the United States.
The acquisition from Aegon does not include Transamerica Re's other businesses but does involve an Irish unit which underwrites Transamerica Re's business.
Aegon said the funds received from Scor plus released capital would allow it to buy back $1.1 billion in shares it had issued to the Dutch state as part of financial crisis measures.
The Charlotte, North Carolina-based Transamerica Re employs 451 people. It realised underlying earnings before tax of $105 million in 2010 on $2.2 billion of gross premiums.
Scor said it would finance the transaction with its own funds and possibly a small debt issue.
"The acquisition of Transamerica Re's mortality portfolio will mark a new milestone in the history of SCOR," the company's chief executive Denis Kessler said in a statement.
"The rebalancing of the Life reinsurance book between the United States, Asia and Europe, while enlarging the Group's footprint and significantly expanding our global franchise, will also provide additional stability to the Group," he added.
© 2011 AFP