Clarica Plans to Purchase Sun Life's Retrocession Lines.Sun Life Assurance Company of Canada plans to sell its life retrocession RETROCESSION, civil law. When the assignee of heritable rights conveys his rights back to the cedent, it is called a retrocession. Erskine, Prin. B. 3, t. 5, n. 1; Dict. do Jur. h.t. and financial reinsurance Financial Reinsurance, also known as 'fin re', is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life segment of the insurance industry this class of transactions is often referred to as finite reinsurance. business to Clarica Life Insurance Co. In a transaction worth C$171 million (about $118.1 million). Sun Life, Toronto, has been shedding some of its businesses as it prepares to convert from a mutual to a stock-owned company this spring. Clarica, which was ranked fourth among individual life retrocessionaires, said in a statement the purchase will make it the second largest in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. with a market share of 22%. Retrocessionaires sell reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. to reinsurers. Clarica said the transaction should close by April 3, pending approval by Canada's Minister of Finance and the Michigan Department of Insurance. Sun Life's reinsurance operations recorded a loss of C$32 million for the first nine months of 1999 compared with a loss of C$12 million incurred in the same period a year ago. During the third quarter, the reinsurance operations picked up a bit, though, producing a profit of C$4 million as compared with a loss of C$8 million for the same period last year. Clarica, the former Mutual Life Assurance Company of Canada, said it expects a return on equity from the business of about 15%. The sale doesn't include Sun Life's accident and health business, which includes workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. retrocessional coverage it sold to members of a pool of reinsurers managed by the former Unicover Managers Inc., now called Cragwood Managers LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , based in South Plainfield, N.J. |
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