Bermuda-based Scottish Re Group Ltd.'s international life reinsurance segment is set to be snapped up by Pacific LifeCorp.

The new operation, called Pacific Life Re, will provide reinsurance solutions to insurance and annuity providers in the UK and Ireland and to insurers in selected markets of Asia.

The acquisition will cost $71.2 million, subject to certain potential downward adjustments, and the transaction is subject to regulatory approvals and other customary closing conditions, both of which are expected to be achieved during the third quarter of 2008.

"The purchase of Scottish Re's international business is a great opportunity for Pacific Life," said Pacific Life's chairman, president and CEO Jim Morris.

"Scottish Re's international business has great growth potential and this transaction provides Pacific Life a practical way to access the growing UK and Asian markets. I am very impressed with the current management team and believe that their expertise, with the support of Pacific Life, will allow us to realise the growth potential that exists."

Through the purchase, Pacific LifeCorp will acquire London-based life reinsurer Scottish Re Ltd. (SRL), Scottish Re Holdings Ltd., the holding company of Scottish Re Ltd., international segment business written by Scottish Annuity & Life Insurance Co. (Cayman) Ltd., together with certain business retroceded within the Scottish Re group, and the staff and physical assets based in Singapore and Japan.

George Zippel, president & CEO of Scottish Re Group Ltd., said, "The sale of the International Life Reinsurance segment is a positive outcome for Scottish Re and is consistent with the revised strategic direction that we announced in February of this year."

As part of the agreement, the current management of the acquired companies will remain intact. Pacific Life Re, which will report to Mary Ann Brown, Pacific Life's senior vice-president of corporate development, will be headed by David Howell and an executive team of seven professionals with a combined 160 years of insurance and reinsurance experience in the UK, Canada, and Asia.

The headquarters of Pacific Life Re will remain in London, with approximately 80 employees in the UK and 15 employees in Singapore and Tokyo.