In line with its strategy to acquire closed life books in the UK,
Swiss Re is purchasing 1.1 million life insurance policies from British financial services firm Legal & General Group Plc.
For £650 million, the policies – which include with-profit, unit-linked, and savings products – will be moved from Legal & General Assurance Society Limited to Swiss Re Life Capital’s ReAssure. The UK closed life book consolidator will manage the additional policies, bringing its total number of owned or administered policies to approximately 4.7 million.
“This is an exciting accomplishment that allows us to achieve economies of scale using our proven platform,” commented ReAssure chief executive Matt Cuhls. “After the successful integration of Guardian, we are confident in our capability to deliver once again.”
The transaction, subject to regulatory approval, will increase ReAssure’s assets under management, including investments for unit-linked and with-profit business, by £33 billion.
“We are delighted to have been able to acquire another attractive portfolio in the UK closed book market,” said Thierry Léger, CEO of Life Capital. “This is an excellent fit with our strategy to grow ReAssure in order to create value for shareholders.
“Swiss Re remains committed to diversify its portfolio by accessing life and health risk pools via alternative channels, and ReAssure provides an excellent platform for growth.”
Cuhls added: “The UK closed book market is consolidating, and this deal allows us to do what we do best: integration, migration and the delivery of great customer service.”
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