Newport Beach, Calif. — Pacific Life Insurance Co. and Bermuda-based Scottish Re Group Ltd. signed a definitive agreement whereby Pacific LifeCorp, the parent company of Newport Beach, Calif.-based Pacific Life, will purchase the International Life Reinsurance segment of Scottish Re Group Ltd. The new operation, to be called Pacific Life Re, provides reinsurance solutions to insurance and annuity providers in the United Kingdom and Ireland and to insurers in selected markets in Asia. The purchase price is $71.2 million, subject to certain potential downward adjustments. Other terms of the purchase agreement were not disclosed. The transaction is subject to regulatory approvals and other customary closing conditions—both of which are expected during the third quarter of 2008.
“The purchase of Scottish Re’s international business is a great opportunity for Pacific Life,” says Pacific Life Chairman, President and CEO Jim Morris. “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.”

Through this purchase, Pacific LifeCorp will acquire the following assets:

•  Scottish Re Limited (SRL), 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 (Cayman) Ltd. together with certain business retroceded within the Scottish Re group
•  The staff and physical assets, based in Singapore and Japan

“The sale of the International Life Reinsurance segment is a positive outcome for Scottish Re, and is consistent with the revised strategic direction that we announced in February of this year,” says George Zippel, president and CEO of Scottish Re Group Ltd. “Under Pacific Life’s ownership, David Howell and his talented team of professionals will have the opportunity to provide significant value to clients and deliver strong financial results to Pacific Life. We wish the entire Pacific Life Re team all the best.”

As part of the agreement, the current management of the acquired companies will remain intact. Pacific Life Re, which will report to Mary Ann Brown, Pacific Life’s SVP of corporate development, will be headed by David Howell and an executive team of seven professionals with a combined 160 years of insurance and reinsurance experience in the UK, Canada and Asia.  The executive team will be:

•  David Howell, FSA – CEO
•  Warren Copp – Chief Underwriter
•  Duncan Hayward, ACA – CFO
•  David Heeney, FIA – CMO, UK and Ireland
•  Andrew Linfoot, FIAA – Regional Director, Asia
•  Steve Nuttall, FIA – Chief Pricing Officer
•  George Scott, Solicitor – Legal Counsel and Chief Risk Officer
•  Jerry Staffurth, FIA – Chief Actuary

The headquarters of Pacific Life Re will remain in London, with approximately 80 employees in the UK and 15 employees in Singapore and Tokyo.

“This transaction is excellent news for our business and for our clients,” says David Howell, future CEO of Pacific Life Re. “Pacific Life has an outstanding reputation for corporate excellence, customer focus, and financial strength and we are delighted to be joining such a highly regarded company. The formation of Pacific Life Re will create exciting growth opportunities for our newly combined businesses and will provide our clients with the confidence and security they seek from a market-leading reinsurance partner.” 

Source: Pacific Life

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