Life reinsurance and annuities specialist Scottish Re Group, which has been in run-off since 2008, has announced that it is to voluntarily wind up and that it may look to sell off some of its key assets.
Scottish Re began voluntary provisional winding up proceedings in Bermuda (where the reinsurance group is headquartered) and also filed to wind up in the Cayman Islands (where it is incorporated) on May 17th 2017.
Liquidators will work with Scottish Re’s board and management to put into place a restructuring plan for Scottish Re, which could involve a sale of its immediate subsidiary, Scottish Annuity & Life Insurance Company (Cayman) Ltd.
Scottish Re has retained investment banking specialist Keefe, Bruyette & Woods, Inc. to help in the sale process of Scottish Annuity & Life Insurance Company and to identify any potential buyers for the firm.
The struggling life reinsurer ceased writing new business in 2008 and has not been accepting any new reinsurance business since that date, becoming effectively a run-off vehicle with long-dated liabilities.
In 2011, Scottish Re merged with a newly formed subsidiary of Cerberus Capital Management, L.P. and MassMutual Capital Partners LLC, in an effort to focus the business on making its run-off assets more profitable.
The remaining business could be attractive to a run-off specialist that feels it can manage the legacy life insurance and reinsurance business through to a profitable conclusion.