SCOR finalises the acquisition of Generali U.S.
SCOR finalises the acquisition of 100% of Generali U.S. Holdings, Inc. (“Generali U.S.”), the holding company of Generali's U.S. life reinsurance operations, with effect from today. SCOR has obtained all the necessary regulatory approvals. With this transaction, the main operating company, Generali USA Life Reassurance, will be changing its name to SCOR Global Life USA Reinsurance Company.
Acquisition enhances value for SCOR’s shareholders
- As originally announced, the purchase price represents a significant discount to SCOR’s preliminary EV estimate of the Generali U.S. in-force portfolio.
- The acquisition has been financed, in part, with the proceeds of the successful issuance of CHF 250 million perpetual subordinated notes, as announced on 10 September 2013. Approximately USD 230 million of the funding was provided from short-term financing, while the remaining funds were provided from internal resources.SCOR’s solvency position remains strong following the acquisition and all four major rating agencies affirmed their ratings for SCOR shortly after the June 4th announcement.
- The acquisition further enhances the Group’s diversification. The post-acquisition business mix is 55% life vs. 45% P&C.2
And reinforces our strong client franchise in the US
- The Generali U.S. acquisition enhances the already strong SGLA platform in the US. The combined group has a market-leading share of the US life reinsurance market, in terms of both in-force and new business.
- This acquisition brings a well-established and highly regarded franchise into the SCOR family. Generali U.S.’s strong client relationships, skills and infrastructure benefit SCOR’s US and worldwide life business.
- Both companies are focused on biometric risks, but with an important complementarity of their product offering. SGLA’s strong franchise in co-insurance, longevity, financial reinsurance and underwriting management tools (such as its patented Velogica offering) is reinforced by Generali U.S.’s capabilities in yearly renewable term, group life and facultative underwriting.
- The combination creates the largest block of mortality experience in the US life reinsurance market, creating research and development opportunities which the company intends to leverage for the benefit of clients and the US life insurance industry.
The combination of SGLA and Generali U.S. provides a strong management team
- JC Brueckner, in charge of the US life reinsurance department
- Glenn Cunningham, for Strategic Planning and Industrial Affairs
- Brock Robbins, as Chief Pricing Officer
- Michael Colannino, in charge of Latin America & Canada
- Larry Moews, as Global Americas CRO (for all Group entities in the Americas)
- Tamora Kapeller, as COO
- Brona Magee, as CFO
- Jay Kinnamon, as Chief Actuary
- David Gates as General Counsel
- Zaira Goodman, as Head of Human Resources
- Maxine Verne, as Corporate Secretary
1 On the basis of an exchange rate as of 31/05/2013 of 1 EUR = 1.2960 USD
2 On a 2012 pro-forma basis, based on Gross Written Premiums.
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