SCOR S.E. says it wants to use XL Re Life America Inc. as a vehicle for expanding its U.S. life reinsurance operations.
SCOR Global Life US, a unit of SCOR, Paris, has agreed to pay the equivalent of about $45 million in cash for XL Re Life America, Hartford, a unit of XL Capital Ltd., Hamilton, Bermuda.
SCOR and XL Capital hope to close on the deal Sept. 30.
“SCOR Global Life intends to offer employment to the XLRLA team upon consummation of the transaction,” SCOR says.
XL Re Life America was incorporated in 1957 as Royal Globe Life Insurance Company, a unit of Royal Maccabees Life Insurance Company, Southfield, Mich., according to an examination report prepared by Delaware insurance regulators.
A unit of XL Capital acquired the company from Hartford Financial Services Group Inc., Hartford, in 2006.
In 2008, XL Re Life America generated about $31 million in premium income in from reinsurance traditional mortality business that included yearly renewable terms as well as coinsurance, SCOR says.
SCOR plans to use the XL Re Life America deal to improve its position in the U.S. life reinsurance market, the company says.
“This small acquisition . . . proves that SCOR is able to profit from market opportunities in the current environment,” SCOR Chairman Denis Kessler says in a statement.