The new operation will be called Pacific Life Re. It will provides reinsurance services to insurance and annuity providers in the UK and Ireland and to insurers in selected markets in Asia.
The purchase price is subject to certain potential downward adjustments.The transaction is subject to regulatory approvals and other customary closing conditions, both of which are expected to be achieved during the third quarter of 2008.
Pacific Life chairman and chief executive officer Jim Morris says: “The purchase of Scottish Re’s international business is a great opportunity for Pacific Life. Scottish Re’s international business has great growth potential and this transaction provides Pacific Life a practical way to access the growing UK and Asian markets. I am very impressed with the current management team and believe that their expertise, with the support of Pacific Life, will allow us to realize the growth potential that exists.”
Under the deal, Pacific LifeCorp will acquire, Scottish Re Limited, a London-based life reinsurer, Scottish Re Holdings Limited, the holding company of Scottish Re Limited, International segment business written by Scottish Annuity & Life Insurance Company together with certain business retroceded within the Scottish Re group and the staff and physical assets based in Singapore and Japan.
Scottish Re UK & Ireland chief marketing officer David Heeney says: “This is excellent news for our organisation and for our clients who have stuck with us despite our recent challenges. We greatly appreciate their support. Our new owners, Pacific Life, bring outstanding financial strength and a reputation for corporate excellence. Their support and backing will be invaluable to us as we strive to grow our business in the UK and Ireland.”