French reinsurer SCOR Group announced that it is “disposing of its US Fixed Annuity business through the sale of its subsidiary Investors Insurance Corporation (IIC) for $55 million.” The entire share capital of IIC will be acquired by Athene Holding Ltd.
IIC is a Life insurer operating in the US, which specializes in the sale of fixed annuities, principally equity-indexed annuities (EIA). It is wholly owned by SCOR Global Life US Re, a subsidiary of SCOR Global Life SE. “The sale will be preceded by a full recapture of the annuity business of IIC reinsured by SCOR Life US,” said the bulletin. “With this sale, SCOR Global Life will completely exit the annuity business.”
The transaction is expected to close in the first half of 2011 following receipt of the applicable regulatory approvals. It is estimated that it will have no impact on the company’s shareholder equity, while freeing up significant regulatory and rating capital.
SCOR’s Chairman and CEO Denis Kessler commented: “The sale of IIC confirms SCOR’s constant focus on the optimization of its portfolio mix. As expressed in our Strong Momentum plan, SCOR is focused on expanding its core Life reinsurance book, which is centred on biometric risk. The resources freed up by the sale of the annuity business will allow us to further pursue this goal.“