Newport Beach-based Pacific Life Insurance Co. said Monday it’s buying a unit of Scottish Re Group Ltd. for $71.2 million.
Scottish Re is a Bermuda-based reinsurance company, or insurer of insurance companies. The company’s investment portfolio came under pressure with the fallout of the subprime loan market last year.
Pacific Life is an insurer with $111 billion in assets, $5 billion in yearly revenue and 2,100 workers in the county.
The unit bought by Pacific Life’s parent company, Pacific LifeCorp, will be renamed Pacific Life Re and provide reinsurance in Britain, Ireland and select parts of Asia.
“Scottish Re’s international business has great growth potential and this transaction provides Pacific Life a practical way to access the growing U.K. and Asian markets,” said Pacific Life Chief Executive Jim Morris.
The sale is expected to close in the third quarter and could be adjusted to a lower price and is subject to regulatory approval, according to a release.
International Life Reinsurance’s management is expected to stay intact, with its headquarters staying in London. No layoffs were announced for the 80-employee company.
Earlier in the month Pacific Life announced Morris would become chairman in addition to the roles of president and chief executive that he already held.
