Pacific Life Insurance Company has agreed to buy a life retrocession business with $106 billion in individual life reinsurance face amounts from Manulife Financial Corp.
Reinsurance is a form of insurance for insurers; a retrocession agreement is a kind of insurance arrangement for a reinsurer.
Pacific Life, Newport Beach, Calif., says its proposed deal with Manulife, Toronto (TSX:MFC), would give Pacific Life a 41% share of the North American individual life retrocession market.
Pacific Life hopes to complete the deal by Sept. 30.
The price of the deal was not disclosed, but Pacific Life says “virtually all employees” from Manulife’s life retrocession business unit have been offered jobs at Pacific Life.”
Pacific Life plans to keep the Manulife retrocession offices in Toronto and Boston, Pacific Life says.
David Howell, the London-based chief executive officer of Pacific Life Re, would oversee the newly acquired retrocession operations, Pacific Life says.