Pacific LifeCorp has agreed to pay about $71 million for the international life reinsurance operations of Scottish Re Group Ltd.
Pacific LifeCorp, the parent of Pacific Life Insurance Company, Newport Beach, Calif., would get Scottish Re Ltd., London, and other Scottish Re operations that sell reinsurance to life insurers and annuity providers in the United Kingdom and in Ireland, and to insurers in some markets in Asia.
Pacific Life hopes to get the regulatory approvals needed to complete the deal by Sept. 30.
The final purchase price could be subject to “downward adjustments,” Pacific Life says.
The seller, Scottish Re, Hamilton, Bermuda, is a life reinsurer that has been struggling to cope with the turmoil in the world investment markets.
Pacific Life sees acquiring Scottish Re’s international business as a practical way to get access to the U.K. and Asian markets, according to Pacific Life Chairman James Morris.
In addition to getting Scottish Re’s London-based subsidiary, Pacific Life would get the subsidiary’s holding company, Scottish Re Holdings Ltd., and international business written by Scottish Re’s Scottish Annuity & Life Insurance Company (Cayman) Ltd. affiliate.
Pacific Life also would get Scottish Re Ltd.’s London headquarters, about 80 employees in the United Kingdom and 15 employees in Singapore and Tokyo.
David Howell and other current Scottish Re international operations managers would continue to run the business.
The name of the operations would change to Pacific Life Re.