Dutch insurer Aegon has signed an agreement to sell an additional block of life reinsurance business to Société Commerciale de Réassurance (SCOR) and to dissolve a related captive insurance company.

The deal is part of Aegon’s stated strategic objective of slashing the amount of capital allocated to its run-off businesses.

As per the agreement, Aegon’s Transamerica life subsidiaries will reinsure about $750m of liabilities to SCOR. The deal comprises nearly half of the life reinsurance business that Transamerica retained following sale of the majority of its life reinsurance business to SCOR in 2011.

It is expected that the transaction will have a one-time benefit of approximately $75m on Transamerica’s capital position and a slightly positive effect on recurring capital generation.

As part of the transaction, Aegon will dissolve a related captive insurance company in place to finance redundant reserves, generally referred to as XXX term life insurance reserves, and will redeem $475m of operational leverage supporting that captive.

Established in 1970, SCOR operates as a reinsurance company providing property and casualty and life reinsurance solutions to its clients.