Scottish Re Group has entered into agreements to unwind the 2005 Orkney I securitization deal as well as to cede the Orkney block of business to Hannover Life Reassurance Co. of America.
The Orkney block of business covers the mortality risk under term life and endowment policies that were reinsured by Scottish Re over 2000 to 2003. The business is 100% assumed by Hannover Re and effective from Jan. 1.
It is expected to generate an annual approximate premium volume of $80 million. Hannover Re will be assuming the technical liabilities associated with the portfolio and will in turn receive the necessary assets from Scottish Re.
The transaction, which is expected to close in May 2011, still requires regulatory approval.
