“An unrelated third party” wants to buy a U.S. reinsurance unit from a reinsurer that has withdrawn from active participation in the reinsurance market.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.
Annuity and Life Reassurance is a unit of Annuity & Life Re America Inc., a wholly owned subsidiary of Annuity and Life Re.
Annuity and Life Re must get approval from the Connecticut Insurance Department before they can complete the deal.
The companies hope to close on the transaction by March 31, 2008, Annuity and Life Re says.