Scottish Re, the Bermuda based run-off life reinsurer, has announced the completion of the unwind of their 2005 Orkney I life insurance securitization transaction. The announcement also signifies the completion of the transfer of the block of business to Hannover Life Reassurance Company of America.
The Orkney 1 life insurance securitization transaction has been unwinding since Scottish Re were placed in run-off and ceased writing new business in 2008. The defined block of life policies (essentially the mortality risk of term life and endowment policies) that Orkney transferred to the capital markets has been ceded to Hannover Life Re who assume the technical liabilities of the portfolio (more on the transfer to Hannover Life Re here).
“The unwind of the Orkney I securitization transaction is consistent with our runoff strategy of reducing our reinsurance obligations and simplifying the operations of the Company. The transaction also strengthens the capital and surplus position of our primary U.S. operating subsidiary, Scottish Re (U.S.), Inc., and further positions it for removal of the Order of Supervision issued by the Delaware Department of Insurance in 2009,” stated Meredith Ratajczak, Chief Executive Officer of Scottish Re (U.S.), Inc.