SCOR signs life deal with Spanish insurer
SCOR Global Life, a subsidiary of reinsurer SCOR SE, has completed a substantial deal to reinsure a portfolio of life policies owned by Spanish insurer Mediterráneo Vida, which is owned by Banco Sabadell.
The deal, known as a Value of In-Force monetisation deal, covers mortality and permanent disability risks, written by Mediterráneo Vida up to December 31, 2013.
As part of the transaction, SCOR Global Life pays Mediterráneo Vida a commission of €82 million. The transaction will be immediately accretive to SCOR’s return on equity target and is expected to generate premium income of around €30 million in 2014 and a stream of premium in the following years.
The deal is in line with SCOR’s Optimal Dynamics three year strategic plan, which envisages robust significant growth in financial solutions.
Paolo De Martin, chief executive officer of SCOR Global Life, said: “The transaction with Mediterráneo Vida demonstrates the ability and commitment of our teams to work closely with our clients to develop innovative financial solutions to support their needs. This new operation clearly illustrates SCOR’s capacity to deploy its strong balance sheet while fully satisfying our Group profitability criteria. It also represents a further step forward in terms of meeting the objectives set out in our ‘Optimal Dynamics’ strategic plan.”
