Scottish Re Group international life reinsurance chief executive David Howell will get over £500,000 if he remains in the role after the business is sold.
Money Marketing revealed last month that the Bermuda-based company is selling its international reinsurance operations, including the UK and Asia, as well as its wealth management business, to focus on the North American market.
The group decided to sell of the UK arm, having been adversely affected by the group’s high sub-prime exposure which has seen it suspended from the New York stock exchange and downgraded by Standard & Poor’s and Fitch.
Howell is understood to have got a £250,000 retention bonus when the business was first put up for sale last year. A buyer has not been announced but an incentive agreement will see Howell get £500,000 plus the equivalent of 4 per cent of the sale price over £2.5m, as well as retained liabilities, if he stays at the firm after a sale is completed.
Scottish Re’s UK operation has around 5 per cent market share and clients include income protection provider Pioneer. Hannover, SCOR and XL have expressed interest in Scottish Re’s business in the past.