Resolution Re has entered into a reinsurance agreement with Symetra Life Insurance Company to transfer financial responsibility for all of Symetra’s structured settlement annuity contracts and a smaller block of income annuities to Resolution Re.
The reinsured block had $5.7 billion in total statutory reserves at December 31, 2017, the parties said.
Under the agreement, Symetra, which ceased selling structured settlement annuities in 2012, will continue to service the reinsured business while Resolution Re will be responsible for asset management following a transition period.
“This transaction strengthens Symetra’s risk-based capital and long-term financial position as we remain focused on growing our primary business lines,” said Margaret Meister, President and Chief Executive Officer (CEO), Symetra Financial.
“Importantly, ensuring a seamless transition for our affected customers has been a key goal for us, and we’re very pleased that they will continue to receive the same great service from our highly skilled Symetra team.”
Wells Fargo Securities is acting as financial advisor and Eversheds Sutherland (US) LLP is acting as legal advisor to Symetra during the transaction, while Debevoise & Plimpton LLP is acting as legal advisor to Resolution Re.