RJ and Makay

Global reinsurer Scor SE (SCR) has reached an agreement with Aegon to acquire the mortality risk reinsurance business of Transamerica Reinsurance. With the exception of retained select blocks of business, Aegon NV (AGN) will divest its global life reinsurance activities.

A series of retrocession agreements from Aegon to Scor Global Life U. S. entities were necessary, as Transamerica is a part of Aegon though not a legal entity.

Midsize variable annuity (VA) writers like John Hancock, Lincoln, and Transamerica should give the big boys — Prudential, MetLife, and Jackson National — a run for their money in this year's race for VA market share. Competition is heating up as new VA filings are prepped for May, the month most insurers give updated prospectuses to the Securities and Exchange Commission.

“On balance, the variable annuities market is getting right back into the features arms race from 2004 to 2007,” says Randy Binner, senior vice president and senior analyst with FBR Capital Markets Corp. His report, “2011 Channel Checks: VA, Life, Indexed Annuity Outlooks Positive, Fixed Annuity and LTC Outlooks Weak,” was released last week.