Scor buys XL’s US life re unit

French reinsurer SCOR is to acquire a US life reinsurance unit of the Bermudan insurer/reinsurer XL Capital in a move aimed at strengthening SCOR’s services in the mortality-protection field and boosting its position in the US market. SCOR said its subsidiary SCOR Global Life US had reached a definitive agreement to acquire XL Re Life America Inc (XLRLA) for €31.7mn (US$45mn), which will be settled in cash and will be entirely self-financed. SCOR said the transaction, which is expected to close on 30 September 2009 subject to regulatory approval, will help SCOR Global Life to further develop its US life reinsurance market position. In 2008, XLRLA generated €22.1mn (US$31.4mn) in premium income stemming from traditional mortality business that includes yearly renewable terms as well as coinsurance. Overall, SCOR produced €2.4bn (US$3.4bn) in net written premiums from its life reinsurance operations in 2008. Commenting on the deal, SCOR chairman and chief executive Denis Kessler said: “This small acquisition is one of the so-called gardening deals as described during SCOR’s Investors’ Day in July. It proves that SCOR is able to profit from market opportunities in the current environment. The business acquired shows a strong compatibility with SCOR’s life strategy that is rooted in focusing on traditional protection business that is not correlated with economic risks.”