Munich Re acquires Bermudian reinsurance block

Munich Re has completed its acquisition of Citi Holding’s Financial Reassurance Company 2010 (FRAC), a special-purpose financial insurance company based in Bermuda.

FRAC reinsures a block of term life insurance policies issued by Primerica Life Insurance Company of Canada, which were in force as of December 18, 2009.

Citi’s balance sheet was reduced by approximately $460 million in assets as part of the sale.

Francesco Vanni d’Archirafi, chief executive of Citi, said: "This transaction is a positive outcome for Citi and joins this business with an industry leader, Munich Re. It also represents yet another step in our strategy to reduce the assets and businesses in Citi Holdings."