Monument Re has announced an agreement that will see it acquire a run-off portfolio of flexible premium retail life insurance contracts from Belgian insurer Ethias S.A., known as the First A Portfolio.
The portfolio will be taken over by Laguna Life DAC, an Irish domiciled re/insurer and wholly owned subsidiary of Monument Re Limited through its Irish subsidiary Monument Insurance DAC.
The terms and conditions of the contracts will remain unchanged, although policyholders will be informed of the change of insurer.
The transfer will also result in the loss of the €100,000 savings guarantee in Belgium, where Ethias is headquartered, as Ireland has no equivalent system.
Once the transaction is completed, Monument Insurance plans to make a new surrender offer, the details of which will be relayed to policyholders of the First A Policies in due time.
Manfred Maske, Chief Executive Officer (CEO) of Bermuda-based Monument Re Group, and Kieran Hayes, CEO of Monument Insurance, said: “It has been a pleasure to work with Ethias on the divestiture of the First A portfolio. We continue to make progress executing our Benelux and Ireland consolidation strategies and firmly establishing our long-term presence in these key markets.
“We are pleased to make this announcement as the First A Portfolio transfer provides Monument Insurance with its second acquisition following the successful integration of Laguna into the Monument Re Group and the acquisition of ABN AMRO Life Capital, Monument Re’s first transaction in Belgium.”
Philippe Lallemand, CEO of Ethias, added: “This operation relates to the implementation of the decision to sell the remaining First A Policies, as announced in May 2017, and is the final step in the full divestiture of this portfolio.
“It is a balanced agreement in which we have sought to ensure that the further management of this portfolio is carried out by a buyer specialized in the run-off management of life insurance products and who, as an Irish company, is also subject to the same European Solvency requirements as Ethias. The payment of the guaranteed returns on these contracts (i.e. 3.46% on average) should therefore not be affected by this transfer.
“We are also pleased that Monument Insurance is planning a redemption campaign for the approximately 4,400 remaining policyholders who have not responded to previous “Switch” campaigns conducted by Ethias and we trust this will also be welcomed by the Belgian Minister of Economic Affairs and by the Belgian consumer associations.”
Ethias is one of the largest insurers in Belgium and offers a product range focused on retail clients and public authorities like cities and municipalities, provinces, schools and hospitals, as well as private companies.