Citi has completed the sale of Financial Reassurance Company 2010, Ltd. (“FRAC”), a special purpose financial insurance company, to a subsidiary of Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft (“Munich Re”).
FRAC reinsures a block of term life insurance policies issued by Primerica Life Insurance Company of Canada, which were in force as of December 18, 2009.
The transaction resulted in a reduction of approximately $460 million of assets from Citi Holdings' balance sheet. FRAC was reported as a part of Citi Holdings, which consists of businesses and portfolios of assets that Citigroup said it had determined were not central to its core franchise. Financial terms of the transaction were not disclosed.
The chief executive officer of Citi Holdings, Francesco Vanni d'Archirafi, said, “This transaction is a positive outcome for Citi and joins this business with an industry leader, Munich Re. It also represents yet another step in our strategy to reduce the assets and businesses in Citi Holdings.”
Learn more: www.citigroup.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].