Swiss Re has agreed to promote its closed e-book subsidiary
ReAssure to Phoenix Group in a money and shares deal that makes Phoenix the UK’s
fourth-largest insurer.
Swiss Re, which beforehand deserted a inventory market
itemizing of ReAssure, will obtain £1.2bn in money and, along with ReAssure’s
minority shareholder MS&AD Insurance coverage Group, a 28% stake within the enlarged
firm.
ReAssure was purchased by Swiss Re in 2003 and has round
4 million insurance coverage contracts which had been offered to clients within the 1960s and
1970s.
Christian Mumenthaler, Swiss Re’s group CEO, mentioned: “Swiss
Re’s aim has been to deconsolidate ReAssure, and we're happy to have discovered
a powerful purchaser for the enterprise. The strategic rationale for the mixture of
the companies is compelling, and we stay up for working along with
Phoenix and to sharing the monetary advantages of the mixture.”
The transaction will reinforce Phoenix’s place as
Europe’s largest life and pensions consolidator with £329bn of property below
administration and greater than 14.1 million insurance policies.
As a part of the transaction, Swiss Re will reacquire the
25% stake in ReAssure at present held by MS&AD.
The transaction is anticipated to shut in mid-2020, topic
to approvals by Phoenix’s shareholders, regulators and anti-trust authorities.
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