Hannover R?ckversicherung A.G. has agreed to acquire a block of U.S. individual life reinsurance business from affiliates of Scottish Re Group Ltd. through a reinsurance and asset purchase deal.
Hannover Re, Hannover, Germany, says it also will be getting the assets that back the ING business, Scottish Re policy administration systems, and other assets supporting the U.S. mortality reinsurance business.
“Hannover Re will also employ part of Scottish Re’s staff, thus ensuring operational continuity and a transfer of know-how, Hannover Re says.
Scottish Re, Hamilton, Bermuda, originally acquired the ING business from a unit of ING Groep N.V., Amsterdam, through a reinsurance transaction that took effect Dec. 31, 2004.
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The business should generate about $1.2 billion in premium revenue this year, according to Hannover Re.
Hannover Re and Scottish Re are hoping to complete the deal by March 31.
Hannover Re Chief Executive Wilhelm Zeller is calling the deal a “transformational step” for the company’s life reinsurance ambitions.