The second largest U.S. life reinsurer says it has taken an important step toward lining up more financial resources.
Scottish Re Group Ltd., Hamilton, Bermuda, reports it is close to completing a reinsurance transaction with an “independent third party” that will provide access to up to $120 million in cash and other liquid assets.
The deal, which is “subject to finalization of customary treaty terms,” is one part of Scottish Re’s plans to raise between $150 million to $250 million to reduce near-term liquidity pressure, Scottish Re President Paul Goldean says in a statement.
Scottish Re announced earlier this year that it had lost money because some reinsurance agreements had performed worse than executives had expected.