XL MID OCEAN TO BUY UK BUSINESS FROM SOUTH AFRICA’S OLD MUTUAL

Bermuda’s XL Mid Ocean Reinsurance is to acquire the existing immediate annuity book of UK-based Old Mutual Life Assurance Co. The acquisition, from South African financial services group Old Mutual plc, forms part of a deal that will see the UK assurer’s non-linked and linked life business being sold to Century Life, which is part of the Century Group. Old Mutual plc finance director Eric Anstee noted that “this will substantially bring to a close our UK insurance activities, which were not producing satisfactory returns”. The deals are expected to release back to Old Mutual capital of about £75m during 2000, a surplus to book value of approximately £15m.