The FINANCIAL -- Swiss Re has agreed to purchase 1.1 million life insurance policies from UK financial service provider Legal & General Group PLC (L&G) for GBP 650 million.
These policies will be managed by ReAssure, a market-leading UK closed life book consolidator within the Swiss Re Life Capital business.
This move is consistent with Swiss Re's strategy to acquire closed life books in the UK. The policies – which include with-profit, unit-linked and savings products – will be transferred to ReAssure from Legal & General Assurance Society Limited, which is part of the L&G Group, according to Swiss Re.
Thierry Léger, CEO of Life Capital, said: "We are delighted to have been able to acquire another attractive portfolio in the UK closed book market. 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."
As a result of this transaction, ReAssure Group will administer an additional 1.1 million policies, bringing the total number of owned or administered policies to approximately 4.7 million, while increasing ReAssure assets under management including investments for unit-linked and with-profit business by GBP 33 billion to approximately GBP 77 billion.
Matt Cuhls, CEO of ReAssure, said: "This is an exciting accomplishment that allows us to achieve economies of scale using our proven platform. After the successful integration of Guardian, we are confident in our capability to deliver once again. 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."
Founded in 1836, L&G is one of the world's largest insurance and investment management companies with GBP 950 billion in assets under management. The transaction is subject to regulatory approval.