Swiss Re's Admin Re® enters into a transaction with HSBC and demonstrates commitment to the Admin Re® strategy
11 June 2014, Zurich
- Swiss Re Admin Re® agrees to acquire individual and group pension and related annuity policies from HSBC Life (UK) Limited
- The transaction demonstrates Swiss Re's commitment to executing on its Admin Re® strategy to acquire closed life books in the UK
- The transaction is scheduled to close in the second half of 2015
Swiss Re has entered into an agreement to acquire through its Admin Re® business unit over 400,000 individual and group pension and related annuity policies as well as GBP 4.2 billion in unit-linked assets from HSBC Life (UK) Ltd. The transaction demonstrates Swiss Re's commitment to delivering tailored solutions to clients and strengthening Admin Re®'s market presence.
John R. Dacey, Chairman of Admin Re® and member of the Swiss Re Group Executive Committee, says: "This transaction is an attractive opportunity for Admin Re® and confirms our commitment to execute on the strategy to grow the Admin Re® business in the UK. Transactions such as this allow Admin Re® to maintain and increase the scale of its business and provide attractive shareholder returns."
Admin Re® is one of Swiss Re's three Business Units. It acquires blocks of in-force life and health insurance business, providing a diversified stream of income for Swiss Re and generating substantial cash for the Group. The transaction underscores Admin Re®'s capability to execute transactions with key Swiss Re clients and migrate significant portfolios onto Swiss Re's proprietary platform.
The transaction which is subject to regulatory and Court approval is expected to be completed in the second half of 2015. As part of the transaction, Swiss Re has also entered into a reinsurance agreement with HSBC which transfers the economic risks and rewards of the business to Swiss Re from 1 January 2014 until completion of the transaction.
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk-taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of over 60 offices globally and is rated "AA-" by Standard & Poor's, "Aa3" by Moody's and "A+" by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed in accordance with the Main Standard on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit: www.swissre.com or follow us on Twitter @SwissRe.
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- deterioration in global economic conditions;
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These factors are not exhaustive. The Group operates in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
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