NU Online News Service, Oct. 24, 2003, 12:22 p.m. EDT – Scottish Re Group Ltd., Hamilton, Bermuda, has agreed to acquire 95% of the outstanding capital stock of ERC Life Reinsurance Corp., a subsidiary of Employers Reinsurance Corp., Overland Park, Kan., for $151 million in cash.
Employers Re is a unit of General Electric Company, Fairfield, Conn.
Scottish Re, a reinsurer founded in 1998, has $105 billion of mortality-based reinsurance business in force.
ERC Life has about $800 million in assets, $100 million in statutory capital and surplus, and $170 billion of in-force business. Most of the ERC Life business consists of a closed block of traditional life reinsurance business written before the new term life reserve requirements took effect, Scottish Re says.