Citigroup transfers coinsurance agreement with Primerica to Swiss Re

A Citigroup logo is pictured from the floor of the New York Stock Exchange July 9, 2014. REUTERS/Brendan McDermid

(Reuters) - Citigroup Inc C.N replaced Prime Reinsurance Company Inc with a subsidiary of Swiss Re Life & Health America Inc SRENH.S as Primerica Life Insurance Company's reinsurer on a coinsurance agreement, the U.S. bank said on Thursday.

The bank said the transaction would result in a reduction of about $2.5 billion of assets from Citi Holdings’ balance sheet.

The coinsurance agreement represented the majority of Citigroup’s remaining reinsurance activities with Primerica Inc and covered a block of term life insurance policies that were in force on Dec. 18, 2009, the bank said.

Prime Reinsurance Co is a Citigroup unit created six years ago when the bank spun off its life insurance business, Primerica Inc.

Following the transaction, Primerica Life Insurance Company will continue to conduct business with Prime Re and certain other Citigroup affiliated reinsurers on other reinsurance agreements executed prior to Primerica’s IPO, the bank said.

Reporting by Sneha Teresa Johny in Bengaluru; Editing by Sunil Nair