Hogan Lovells has advised reinsurer SCOR on the value-in-force (VIF) reinsurance of the individual life insurance business portfolio of Mediterráneo Vida, owned by Banco Sabadell.
Mediterráneo Vida has entered into a 99 per cent quota share reinsurance agreement with reinsurance entity SCOR Global Life Reinsurance Ireland, covering Mediterráneo Vida’s life insurance portfolio in Spain in force as of 30 September 2013. As part of the transaction, SCOR Global Life pays Mediterráneo Vida a commission of €82m (£68m). The transaction is expected to generate premium income of around €30m in 2014 and a stream of premium in the following years.
The deal, which extends SCOR’s presence in this attractive market segment, is in line with its three-year strategic plan, which envisages robust significant growth in financial solutions.
Hogan Lovells teams from London and Madrid have worked together to advise SCOR on the reinsurance agreement and related collateral agreement. This is the fourth deal of this kind in Spain in which Hogan Lovells has participated in the past two years and the third deal where the firm has advised SCOR until deal completion (after the VIF reinsurance transactions with BBVA and Banco Popular).
The Hogan Lovells team advising on this transaction was led by insurance partners Joaquin Ruiz Echauri and Victor Fornasier and banking and finance partner José Luis Vázquez. The team also included senior associates Jamie Rogers and Alejandro González and associates Virginia Martínez and Isabel Fons.