Annuity and Life (Holdings) Ltd. has announced plans to transfer most responsibility for its remaining life and annuity reinsurance treaties over to units of Wilton Re Holdings Ltd.[@@]
Annuity & Life Re, Hamilton, Bermuda, has been struggling for years to overcome problems with many of its major reinsurance arrangements by unwinding its business.
The new deal calls for subsidiaries of Wilton Re, Hamilton, Bermuda, to assume responsibility for the treaties through novation arrangements or 100% coinsurance arrangements, according to Annuity & Life Re.
Once the deal closes, Annuity & Life Re subsidiaries will pay Wilton Re’s subsidiary a settlement of about $92 million, Annuity & Life Re says.
The settlement amount will consist of $33 million in Annuity & Life Re cash along with assets held by cedents in connection with certain reinsurance treaties, Annuity & Life Re says.