Scottish Annuity & Life Insurance Company (Cayman) Ltd. is making a cash offer for a designated class of “collateral facility certificates.”
Scottish Annuity & Life is a unit of Scottish Re Group Ltd., Hamilton, Bermuda (Pink Sheets: SKRRF), a life reinsurer. In April, Jonathan Bloomer, the company’s chairman, said Scottish Re is moving forward with an orderly run-off.
Scottish Annuity says the new cash offer applies to collateral facility certificates, or “pass-through certificates,” that pay a rate of 5.902% and are associated with the Stingray Pass-Through Trust.
In 2005, a speaker at a symposium organized by the Society of Actuaries, Schaumburg, Ill., said Scottish Re had used the Stingray Pass-Through Trust to fund $325 million in Regulation Triple X term life reserving requirements.
The National Association of Insurance Commissioners, Kansas City, Mo., developed the Triple X standards in an effort to increase the odds that life insurers will be able to make good on obligations to term life policyholders and beneficiaries.
The collateral facility certificates are due Jan. 12, 2005, according to a report Scottish Re filed with the U.S. Securities and Exchange Commission in 2004.