The second-largest U.S. life reinsurer says it is reviewing proposals from parties that might supply access to cash, and other proposals from parties that want to acquire it.
Scottish Re Group Ltd., Hamilton, Bermuda, suffered a large loss in the second quarter as a result of problems with reinsurance arrangements that failed to perform as the company had hoped.
“Scottish Re plans to raise between $150 million and $250 million to reduce short-term liquidity pressures,” the company says in an update on efforts to get the company back on track.
The company now has 3 written proposals for financing in-hand, and it hopes to receive several additional proposals in the near future, the company says.
Scottish Re also has received “proposals from a number of potential bidders” that are interested in acquiring the company, according to Paul Goldean, the company’s interim chief executive.
Scottish Re has given bidders an actuarial analysis that shows Scottish Re really is worth more than its current book value would indicate, the company says.
Scottish Re wants to give bidders a chance at a second round of due diligence, then announce a deal by early November, the company says.
Wilhelm Zeller, chief executive of Hannover R?ckversicherung A.G., Hannover, Germany, hinted at a reinsurance industry meeting in Monte Carlo that his company might be among the bidders, according to Reuters.
Reuters has identified Scor S.A., Paris, has another possible bidder.
Scottish Re also has announced that it expects Scott Willkomm and Seth Vance, former Scottish Re executives, to exercise stock options and sell Scottish Re stock in the next few weeks.
Former Scottish Re executives have 60 days from the date of their separation from Scottish Re to exercise stock options, the company says.