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RECENTLY ANNOUNCED REINSURANCE TRANSACTION
9 Months Ended
Sep. 30, 2015
RECENTLY ANNOUNCED REINSURANCE TRANSACTION  
RECENTLY ANNOUNCED REINSURANCE TRANSACTION

 

3.RECENTLY ANNOUNCED REINSURANCE TRANSACTION

 

On September 30, 2015, the Company entered into a Master Agreement (the “Master Agreement”) with Genworth Life and Annuity Insurance Company (“GLAIC”). Pursuant to the Master Agreement, the Company agreed to enter into a reinsurance agreement (the “Reinsurance Agreement”) pursuant to which the Company will coinsure certain term life insurance business of GLAIC. In connection with the reinsurance transaction, the Company intends to enter into a financing transaction with a term of up to 20 years involving, among other parties, its indirect wholly owned subsidiary, Golden Gate Captive Insurance Company (“Golden Gate”), and a syndicate of third-party risk takers, to finance up to $2.2 billion of “XXX” reserves related to the GLAIC business to be reinsured and the other term life insurance business currently reinsured by Golden Gate. Although the Company intends to execute the financing transaction concurrently with its entry into the Reinsurance Agreement, the closing of the transactions contemplated by the Master Agreement is not conditioned upon the consummation of the financing transaction.