Scottish Re Group is selling its UK life reinsurance operation after a strategic review.
The Bermuda-based company has been downgraded by Standard & Poor’s and Fitch in the past six weeks due to high sub-prime exposure.
The firm is selling off reinsurance operations in Ireland and Asia as well as its wealth management business and plans to focus on the North American market.
Scottish Re’s UK operat-ion has around 5 per cent market share and its clients inc-lude income protection pro-vider Pioneer.
Hannover, SCOR and XL have expressed interest in Scottish Re’s business in the past although industry experts suggest an international firm could be in the frame.
Chief marketing officer, UK and Ireland, David Heeney says: “The US operation was affecting ratings for the group as a whole. We are looking to grow and track back to higher ratings which will be much easier to fulfil with a new owner.”
Le Beau Visage managing director Peter Le Beau says: “Scottish Re has a fantastic UK team but the legacy of the sub-prime business has been a burden. This is positive news for the team and the industry.”