Citigroup planning to sell Prime Re – Bloomberg

(Reuters) – Citigroup Inc (C.N) is planning to sell Prime Reinsurance Co, a unit created five years ago when the bank spun off its life insurance business, Primerica Inc (PRI.N), Bloomberg reported.

The unit, referred to as Prime Re, could draw interest from Reinsurance Group of America Inc (RGA.N), Resolution Re and other companies that buy blocks of complex insurance contracts, Bloomberg reported, citing people with knowledge of the matter.

Citigroup spokeswoman Jennifer Lowney declined to comment on the report.

The Bloomberg report did not provide an estimated value of a sale. Prime Re had $7 billion in assets as of Sept. 30, 2013.

Last month, Citigroup said it will sell its consumer finance unit OneMain Financial Holdings Inc to subprime lender Springleaf Holdings Inc (LEAF.N) for $4.25 billion in cash.

OneMain’s sale was part of the No. 3 U.S. bank’s plan to sell unwanted assets and focus on wealthier clients.