Munich Re acquires reinsurance block from Citi

Financial services provider Citi has completed the sale of Financial Reassurance Company 2010 (FRAC), a special-purpose financial insurance company, to a subsidiary of Munich Re.

FRAC reinsures a block of term life insurance policies issued by Primerica Life Insurance Company of Canada, which were in force as of December 18, 2009.

Citi Holdings’ balance sheet was reduced by approximately $460 million in assets as part of the transaction.

Francesco Vanni d'Archirafi, chief executive officer of Citi Holdings, said: "This transaction is a positive outcome for Citi and joins this business with an industry leader, Munich Re. It also represents yet another step in our strategy to reduce the assets and businesses in Citi Holdings."