Exhibit 10.47
[MID OCEAN LOGO]
LETTER OF INTENT
between
XL MID OCEAN REINSURANCE LTD
and
ANNUITY AND LIFE REASSURANCE, LTD.
BUSINESS REINSURED
Retrocession of portions of the business reinsured to XL Mid Ocean
Reinsurance Ltd ("XLMO") from Old Mutual Life Assurance Company Ltd.
("Old Mutual") under agreement number LT00023A99.
REINSURANCE METHOD
Modified coinsurance for 15% of the full risks.
YRT for an additional 35% of the longevity risk.
(the above subject to agreement on the Risk Charge noted below)
REINSURANCE PREMIUM AND BENEFITS
For the modified coinsurance portion, Annuity & Life Re ("ALRe") will
receive/reimburse a 15% quota share of all flows under the agreement
with Old Mutual. For the YRT portion, ALRe will receive a premium equal
to the expected benefit payments based on XLMO's original pricing
assumptions. ALRe will reimburse the actual benefits payments made.
ALRe will receive a Risk Charge based on the amount of capital required
to support the longevity risk. The Risk Charge is estimated to be 13
basis points of statutory reserves annually, but is subject to
agreement by both parties.
EFFECTIVE DATE
The same as the effective date of the agreement with Old Mutual, i.e.,
December 17, 1999.
Accepted for: Accept for:
Annuity & Life Reassurance, Ltd. XL Mid Ocean Reinsurance Ltd
By:/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By:/s/ ▇▇▇▇ ▇. ▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Name: ▇▇▇▇ ▇. ▇▇▇▇
Title: Senior Vice President Title: Chief Financial Officer
Date: April 13, 2000 Date: 13/04/00