Bermuda-based Scottish Re yesterday agreed to buy five percent of General Electric's reinsurance unit's life polices.

Scottish Re, formerly Scottish Annuity and Life, will buy the policies from Employers Re for $151 million.

General Electric said last year it would sell the assets of its Life Re business, which accounted for about a quarter of its Employers Re reinsurance unit, a provider of policies for other insurers. Employers Re will administer the business for as much as nine months, Scottish Re said in a statement.

The gross face amount of the policies is about $170 billion, or about five percent of Employers Re's life and health business, the companies said. The policies have about $800 million in assets and $100 million in legally mandated capital and surplus.

Scottish Re, based in Bermuda, sells life reinsurance and insurance for wealthy clients and families. Insurers sell reinsurance to spread the risk taken on for clients.

Life and health reinsurance traditionally accounts for 25 percent to 30 percent of Employers Re's policies, spokesman Dean Davison said.

Scottish Re declined $3.38 to $20.48 at 1 p.m. in New York Stock Exchange composite trading after the company said third- quarter profit fell 77 percent. Fairfield, Connecticut-based General Electric fell 37 cents to $28.02.