Scottish Annuity Agrees To Acquire Pacific Life Reinsurance Subsidiary

By Staff Writer

August 06, 2001 at 08:00 PM

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NU Online News Service, Aug. 6, 2:45 p.m. – Scottish Annuity & Life Holdings Ltd., George Town, Grand Cayman, has agreed to acquire World-Wide Holdings Ltd. and its subsidiary, World-Wide Reassurance Company Ltd., from their parent company, Pacific Life Insurance Company, Newport Beach, Calif., for Scottish Annuity stock with a current value of $78 million.

Completing the deal would give Pacific Life a 22% stake in Scottish Annuity, making it the company's largest shareholder.

Glenn Schafer, president of Pacific Life, and Khan Tran, the chief financial officer, would join the Scottish Annuity board.

World-Wide Reassurance is based in Winsor, England. It provides life reinsurance to insurance companies outside the United States. It also acts as a retrocessionaire, or provider of reinsurance for reinsurers, for U.S. reinsurers.

World-Wide has $166 million in assets, according to Pacific Life.

Acquiring World-Wide would increase the consolidated capital of Scottish Annuity to more than $300 million, Scottish Annuity executives report.

World-Wide says it believes the transaction will "ensure the continuity" of the current World-Wide management team, and enable the unit to continue to do business using its existing name.

Scottish Annuity hopes to get approval for the acquisition from its shareholders and regulators by the end of the year.

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