trending Market Intelligence /marketintelligence/en/news-insights/trending/uLqpmZsnIxEDp3KDv22ouA2 content esgSubNav
In This List

Citi Holdings assets down by $2.5B with Citi's transfer of coinsurance deal with Primerica to Swiss Re


Street Talk | Episode 94: Recessionary fears in ’22 overblown, Fed could overtighten


Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds


Investment Banking Essentials Newsletter April Edition - 2022


Banking Essentials Newsletter April Edition - 2022

Citi Holdings assets down by $2.5B with Citi's transfer of coinsurance deal with Primerica to Swiss Re

Asubsidiary of Swiss Re Life &Health America Inc. replaced Citigroup Inc. unit Prime Reinsurance Co. Inc. as Primerica Life Insurance Co.'s reinsurer on acoinsurance agreement covering a block of term life insurance policies thatwere in force on Dec. 18, 2009.

Citigroup reportedPrime Re as a part of Citi Holdings, which consists of businesses andportfolios of assets that Citigroup has determined are not central to its corefranchise.

Thetransaction closed March 31. It resulted in a reduction of about $2.5 billionof assets from Citi Holdings' balance sheet.

Thecoinsurance agreement represented the majority of Citigroup's remainingreinsurance activities with Primerica Inc., following Primerica's and ultimateseparation from Citigroup. Following the transaction, Primerica Life Insurancewill continue to conduct business with Prime Re and certain other Citigroupaffiliated reinsurers on other reinsurance agreements executed prior toPrimerica's IPO.

Since itscreation, Citigroup has reduced assets in Citi Holdings by more than $700billion. As of Dec. 31, 2015, Citi Holdings' assets represented about 4% oftotal Citigroup assets, down from a peak of about 40%.

Citigroup'sInstitutional Clients Group advised Citigroup on the transaction. Skadden ArpsSlate Meagher & Flom LLP served as legal adviser to Citigroup. DLA PiperLLP (US) served as legal adviser to Primerica.

In a definitiveproxy statement filed March 16, Citigroup said that it has exitedCiti Holdings' businesses and assets "as quickly as practicable in aneconomically rational manner."

"The massive reduction in [Citi Holdings'] assets hasbeen accomplished through more than 60 M&A transactions, portfolio sales,portfolio runoff and repayments," the company noted in response to astockholder proposal recommending that the board act to explore options tosplit the New York-basedcompany into two or more companies.