Alea Europe AG said it has completed a transaction that should bring the firm $10 million at a minimum for the sale of renewal rights to part of its reinsurance business covering its property-casualty treaty portfolio to SCOR.
The subsidiary of the Bermuda-based Alea Group Holdings Ltd. said that Paris-based SCOR will pay it in cash a commission equal to 9.5 percent of gross premiums written on renewed European reinsurance business of Alea Europe starting in 2006.
About 90 percent of Alea Europe's business starts on Jan. 1, with payments made six weeks later.
Both parties estimate payments to Alea under the agreement will be between $10 million and $20 million. Payments will be capped at $30 million.
For the full year 2004, the book of business subject to the transaction generated $220 million in gross premiums written and underwriting profit of $1.9 million.
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