4th Jan 2016 17:09
LONDON (Alliance News) - Old Mutual PLC on Monday said its Old Mutual (Bermuda) Holdings Ltd subsidiary completed the sale of Old Mutual (Bermuda) Ltd to Beechwood Bermuda Ltd on December 31.
In anticipation of the sale, the group said, Old Mutual (Bermuda) Ltd's remaining variable annuity guaranteed minimum accumulation benefits, which mature in 2017 and 2018, were reinsured by another of Old Mutual (Bermuda) Holdings Ltd's subsidiaries, Old Mutual (Bermuda) Re Ltd, and Old Mutual repaid about USD100.0 million of internal loan notes to Old Mutual (Bermuda) in December.
"This transaction represents an important step in the preparations for the group's exit from its Bermuda businesses by the end of 2018 when the guaranteed minimum accumulation benefits liabilities to customers are due to expire," Don Hope, chairman of Old Mutual (Bermuda) Holdings, said.
Old Mutual has agreed to provide Beechwood with administration services for three years, which was one of the terms of the deal.
Aside from the guaranteed minimum accumulation benefits, all other guarantees and responsibilities for remaining policyholder administration have been transferred to the buyer.
Other terms of the transaction were not disclosed. Regulatory approvals required for the transfer of future policy administration arrangements are expected to be received by the end of the first quarter of 2016, it said.
Shares in Old Mutual closed down 4.4% at 170.97 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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