XL Group plc and Reinsurance Group of America, Incorporated separately announced a reinsurance deal in which XL’s subsidiary, XL Life Ltd. will ceded a block of U.S. term life reinsurance treaties to an RGA subsidiary.

According to RGA, the block of business consists of 290,000 policies.

While neither side disclosed financial terms of the deal, XL said that transaction includes all its U.S. Term Life reinsurance policy reserves and cedes 80 percent of the remaining life reinsurance premiums that were not included its 2014 sale of its life reinsurance subsidiary, XL Life Reinsurance (SAC) Ltd. to GreyCastle Holdings Ltd. for $570 million.

Mike McGavick, CEO of XL, said: “Over the past few years, through a series of strategic steps, we have made XL Catlin a stronger and more disciplined company focused on our core property & casualty operations. This transaction will remove the vast majority of risk associated with our remaining runoff life exposures.”

XL announced the runoff of its life reinsurance business in 2009.

RGA President Anna Manning said the deal “supports RGA’s strategy of deploying capital by acquiring runoff life insurance blocks.”

“Our deep expertise and understanding of the life reinsurance market has provided us with the tools to secure an innovative solution for XL,” she said.

The transaction is effective immediately.

Sources: XL Group, RGA