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August 09, 2007 at 03:24 PM
“An unrelated third party” wants to buy a U.S. reinsurance unit from a reinsurer that has withdrawn from active participation in the reinsurance market.
Annuity and Life Re (Holdings) Ltd., Hamilton, Bermuda, a company that suspended reinsurance sales because of underwriting problems and other problems, says it has agreed to sell Annuity and Life Reassurance America Inc. for $6.95 million, “plus an amount equal to any capital and surplus in excess of $7,400,000 that is required by the Connecticut Insurance Department.”
The buyer is not willing to pay more than $11.6 million for the U.S. unit, Annuity and Life Re says.
Annuity and Life Re has agreed to deduct $25,000 from the final purchase price for “each insurance license in excess of three that is deemed a restricted license at closing,” the company says.
