NU Online News Service, Feb. 14, 2005, 6:10 p.m. EST
A Hamilton, Bermuda, life reinsurer has raised $850 million.[@@]
The reinsurer, Scottish Re Group, Ltd., brought in the cash by issuing securities with a 30-year maturity through a new subsidiary, Orkney Holdings L.L.C.
Scott Re will use the cash to meet reserve requirements for level-term life policies assumed between Jan. 1, 2000, and Dec. 31, 2003.
The transaction involved a coinsurance arrangement with a South Carolina captive, Orkney Re. Scottish Re contributed initial surplus to capitalize Orkney Re and Orkney Holdings and paid an initial insurance premium to Orkney Re.
Scottish Re will contribute the proceeds from the securities issue to Orkney Re over time, and Orkney Holdings will service the securities with dividends from Orkney Re, Scottish Re says.