(Bloomberg) — XL Group Plc agreed to sell about 290,000 life insurance policies at a loss to Reinsurance Group of America Inc. as Chief Executive Officer Mike McGavick narrows his company’s focus to property-casualty coverage after buying Catlin Group Ltd.
The deal represents about $22 billion of insurance in force, according to a statement Wednesday from Chesterfield, Missouri-based RGA that didn’t disclose terms. XL expects to record a net loss of about $34 million tied to the transaction, the Dublin-based company said in a separate statement.
McGavick agreed last year to sell its life reinsurance business for $570 million in cash to Greycastle Holdings Ltd., a company in Bermuda whose shareholders include family offices and university endowments. XL has been shifting its business mix, selling a stake in a home insurer to Progressive Corp. this year and buying Catlin for about $4 billion to expand offerings of specialized commercial coverage.