Monument Re acquires run-off portfolio from Belgian insurer Ethias

Bermuda-based Monument Re, through its European subsidiary Laguna Life, has acquired a run-off portfolio of flexible premium retail life insurance contracts from Ethias, known as the First A Portfolio.

Laguna Life is an Irish domiciled insurance undertaking and a wholly owned subsidiary of Monument Re and its Irish subsidiary Monument Insurance. Ethias is the fourth-largest insurer and the largest direct insurer by gross written premium (GWP) in Belgium.

Following the completion of the acquisition, Monument Insurance intends to make a new surrender offer.

The company said that policyholders will be informed about the change of insurer, but their contract terms and conditions will remain unchanged.

This transfer will result in the loss of the savings guarantee in Belgium up to a maximum of €100,000, Monument Re said. Ireland, the country where the new insurer is established, has no equivalent system.

Manfred Maske, CEO of Monument Re Group, and Kieran Hayes, CEO of Monument Insurance, said: “We continue to make progress executing our Benelux and Ireland consolidation strategies and firmly establishing our long-term presence in these key markets.

"We are pleased to make this announcement as the First A Portfolio transfer provides Monument Insurance with its second acquisition following the successful integration of Laguna into the Monument Re Group and the acquisition of ABN AMRO Life Capital, Monument Re’s first transaction in Belgium."

Philippe Lallemand, CEO of Ethias commented: “This operation relates to the implementation of the decision to sell the remaining First A Policies, as announced in May 2017, and is the final step in the full divestiture of this portfolio.

“It is a balanced agreement in which we have sought to ensure that the further management of this portfolio is carried out by a buyer specialized in the run-off management of life insurance products and who, as an Irish company, is also subject to the same European Solvency requirements as Ethias. The payment of the guaranteed returns on these contracts (i.e. 3.46 percent on average) should therefore not be affected by this transfer.

“We are also pleased that Monument Insurance is planning a redemption campaign for the approximately 4,400 remaining policyholders who have not responded to previous 'Switch' campaigns conducted by Ethias and we trust this will also be welcomed by the Belgian Minister of Economic Affairs and by the Belgian consumer associations.”

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