Bermuda, Reinsurer Scottish Re Group Ltd. has sold its Middle East life portfolio to Arab Insurance Group(Arig), one of the largest reinsurance companies in the Middle East and North Africa.
Scottish Re will transfer the portfolio, which has $22 million in annual premiums, to Arig on July 1. Financial terms weren't disclosed.
Scottish Re Group said the transaction would enable the company to focus more on specialist global aviation business in the UK and Ireland and Asia. The company noted that the portfolio represents a good strategic fit for Arab Insurance Group or Arig.
Scottish Re was recently bought for $600 million by MassMutual Capital Partners, a unit of the Massachusetts-based insurer, and private-equity fund Cerberus Capital Management. MassMutual Capital is a division of the MassMutual Financial Group.
Scottish Re has 150 employees at its south Charlotte office, where its North American headquarters is located. The company's headquarters is in Bermuda.
As per the agreement a section of the employees of Scottish Re's local office would relocate to Arab Insurance and thus ensure continuation of service to the client. During the transition period the company assured the client reinsurance treaties and contracts to remain unchanged. Arig added that the Scottish Re's portfolio is solid and complement to it.
Commenting on the agreement Yassir Albahama, Chief Executive Officer of Arab Insurance Group said “Arig is firmly committed to the continued growth of all classes of business and has been exploring ways to diversify from its traditional non-life book. This transaction therefore underscores our strength and capabilities to become a leading life reinsurance provider in the MENA region.”
The company is the second-largest life-insurance reinsurer in the United States, behind Swiss Re.