7 August 2012
Clifford Chance advises Abbey Life Assurance Ltd, a unit of Deutsche Bank AG, on a reinsurance agreement with Santander
International law firm Clifford Chance has advised Abbey Life Assurance Ltd, a unit of Deutsche Bank AG, on a transaction with Grupo Santander under which Abbey Life Assurance Ltd will reinsure 100% of a portfolio of life insurance risk of the insurance companies of Banco Santander in Spain and Portugal. The transaction monetises Santander's life risk insurance portfolio in Spain and Portugal, resulting in a pre-tax capital gain for Santander of €490 million.
This reinsurance transaction is unique in the Spanish and Portugese insurance markets. Clifford Chance's insurance experts expect to see more of these innovative transactions in the market as Solvency II approaches and insurance companies seek to realise the value of blocks of business and improve their capital position without selling a whole company or business.
Clifford Chance is a long-standing adviser to Deutsche Bank and this transaction follows our recent role as lead legal adviser on Deutsche Bank's longevity transaction for Rolls Royce, which was executed in derivative form and placed into the reinsurance market.
Contacts Katherine Coates (lead partner), Carol-Ann Burton (senior associate) and Hugo Laing (associate), Gregory Nash (associate), Lachlan Low (associate), Riya Sen Gupta (associate) and Michael Keaveney (associate) advised on structure and insurance aspects. Andrew Coats (partner), Thomas Lockley (senior associate) and Christopher Kiew-Smith (associate) advised on financing and collateral arrangements. Chris Davies (partner), Daniel Cunningham (senior associate), Michelle Carnegie (senior associate) and Jan Hobbs (associate) advised on tax issues. Esther Cavett (partner) and Hannah Ward (associate) advised on trust issues.