Bermuda-based XL Capital Ltd. has sold its US life reinsurance operations to a unit of the Scor Group in a cash deal worth $45.1 million.

XL announced last summer that it was exploring options for its life businesses as it sought to sharpen its focus on its core property and casualty units.

Scor Global Life US (SGL), a wholly-owned subsidiary of the Paris-based Scor Group announced yesterday that it had reached agreement to acquire XL Re Life America Inc. (XLRLA).

An XL spokeswoman said yesterday that the deal would not affect any Bermuda-based staff, only a small number of US-based employees.

"SGL intends to offer employment to the XLRLA team upon consummation of the transaction," reads yesterday's statement from Scor.

"This will ensure that it will have the resources to maintain its excellent services with regard both existing clients and those new clients acquired through the XLRLA transaction."

Scor added the deal would be "entirely self-financed".

The transaction is expected to close on September 30 this year and is subject to regulatory approval and normal closing conditions.

In 2008, XLRLA generated $31.4 million in premium income. It provides coverage for traditional life insurance sold across the US by insurers.

SGL said the acquisition would allow it to further develop its US life reinsurance market position.

Scor chairman and CEO Denis Kessler said: "This small acquisition is one of the so-called gardening deals as described during Scor's Investors' Day in July. It proves that Scor is able to profit from market opportunities in the current environment.

"The business acquired shows a strong compatibility with Scor's life strategy that is rooted in focusing on traditional protection business that is not correlated with economic risks."

SGL added that both Scor and XLRLA have strong reputations in the US for building long-term mutually profitable relationships with their clients.