Scottish Re, a Bermuda domiciled life reinsurer currently going through a run-off process, has announced their second quarter 2011 financial results and recorded a loss due to the unwinding of a life insurance securitization transaction. The Orkney 1 life insurance securitization transaction has been unwinding since Scottish Re were placed in run-off and ceased writing new life reinsurance business in 2008. The unwind completed in May.
Scottish Re’s 2nd quarter financial statement suffered due to the unwinding of this transaction. The unwind of Orkney I has contributed loss of $153.3m to their quarterly financial results.
Hannover Life Re bought the mortality risks associated with the defined block of life insurance that was securitized back in April.