NU Online News Service, Dec. 23, 2003, 12:17 p.m. EST – Scottish Re Group Ltd., Hamilton, Bermuda, says it has completed previously announced plans to acquire 95% of the stock of ERC Life Reinsurance Corp. from Employers Reinsurance Corp., Overland Park, Kan., an affiliate of General Electric Company, Fairfield, Conn.[@@]
Scottish Re agreed to pay $151 million for ERC Life, which has $800 million in assets and reinsures life and health policies with a face value of $170 billion.
Before Scottish Re acquired ERC Life, it reinsured life business with a face value of about $105 billion.
Although ERC Life has a mailing address in Kansas, its state of domicile is Missouri. Missouri regulators approved Scottish Re’s application to acquire ERC Life earlier this month.
GE Employers Re has agreed to administer the ERC Life business for up to 9 months from the date of the acquisition, Scottish Re says.
Scottish Re reports that it will not be hiring any GE Employers Re employees as a result of the ERC Life deal.