Bermuda-based Annuity and Life Re (Holdings), Ltd. has announced that it has increased in size after buying into the US life re-insurance market for $13.2 million.

The company's wholly owned subsidiary, Annuity & Life Re America, Inc., has bought over Capitol Bankers Life Insurance Company from Life Reassurance Corporation of America.

Capitol Bankers, which will be Annuity's US subsidiary, will offer facultative and supportive reinsurance services to US life insurers.

According to the company, Capitol Bankers will complement the Annuity's growth strategy while being a low cost provider.

Capitol Bankers has entered into an administrative reinsurance agreement with Reassure America Life Insurance Company, a subsidiary of Life Reassurance, to hand over 100 percent of the existing in force business.

The deal requires Reassure America to meet the needs of the policyholders of Capitol Bankers while Annuity America, Inc. focuses its future development in the reinsurance sector.

Lawrence Doyle, Chief Executive Officer of Annuity & Life Re (Holdings), Ltd., said: "We are very pleased to have a US capability, which will be able to deliver service to US life insurers while maintaining a very competitive operating structure.'' Annuity Life Re Holdings provides annuity and life reinsurance to insurers through its wholly owned subsidiary, Annuity and Life Reassurance, Ltd.