LQF Financial Products and Rosedale Cooley & Co Close USD1.5 Billion Longevity Transfer Transaction

Online, June 11, 2012 (Newswire.com) - LQF Financial Products, SA, a subsidiary of Weststar Re, announced today that it had completed a longevity risk transfer transaction with an affiliate of New York-based investment firm Rosedale Cooley & Co.

The transaction enables LQF to eliminate risk contained within its legacy annuity business which it announced in 2011 that it would begin to wind down. In consideration of the assumption of LQF's liabilities, Rosedale Cooley and its affiliates will be paid USD 320 million and will employ capital markets and related hedging strategies to mitigate the assumed risk.

Brian Lawrence-Ge, Managing Director of LQF announced that "this transaction furthers our stated objective of winding down non-core business units allowing us to refocus our efforts and properly manage our capital base. While the transaction will have an initial negative impact to our earnings, its long term benefits far outweigh the short term costs."

Graeme Timothy, a Vice President with Rosedale Cooley & Co. commented "Rosedale Cooley is pleased to have participated in this innovative transaction as part of our on-going global efforts to explore opportunities in the longevity and mortality risk marketplace. We anticipate that this marketplace will continue to grow as demand for risk transfer and liability management grows among traditional insurance companies, pension funds and government organizations."

LQF Financial Products, SA is a subsidiary of Weststar Re, a global reinsurance company with a primary focus in the annuity and retirement protection sectors. Together, LQF and Weststar structure highly customized and specialized products for clientele spread across North America, Asia and key emerging markets. The Company competes to be a service provider focused on creating lasting value for its clients, shareholders, people and the communities in which it operates.