XL completes life reinsurance transaction to GreyCastle

XL Group has announced the completion of the sale of XL Life Reinsurance Ltd. toGreyCastle Holdings for $570 million in cash.

The completed transaction includes the execution of the reinsurance arrangements with XLLR covering the substantial portion of XL's life reinsurance reserves via 100 percent quota share reinsurance.

XL's life reinsurance business has been in run-off since 2009.

"By completing this transaction and dealing with the vast majority of its life reinsurance business, XL has reduced its risk profile and taken another step toward delivering top-quintile return on equity and book value growth from its core property and casualty operations. This is a good announcement for XL and its shareholders." says Mike McGavick, CEO of XL.

At the end of the first quarter of 2014, XL had total US GAAP policy benefit reserves relating to its life reinsurance business of approximately $4.8 billion. With the completion of the transaction, XL has reinsured approximately $4.4 billion of these reserves to XLLR.