Swiss Re Admin Re® agrees to sell US subsidiary Aurora to RGA
21 October 2014, Zurich
Swiss Re Admin Re® announces the sale of its US subsidiary Aurora National Life Assurance Company to Reinsurance Group of America, Incorporated (RGA).
RGA has agreed to acquire 100% of the stock of Aurora National Life Assurance Company, a wholly owned life insurance subsidiary of Swiss Re. Aurora is part of the US business retained by Admin Re® following the sale of its US Admin Re® holding company Reassure America Life Insurance Company (REALIC) to Jackson National Life Insurance Co in September 2012.
The sale involves approximately 82 000 policies in force and USD 2.7 billion in policyholder liabilities.
John R. Dacey, Swiss Re's Group Chief Strategy Officer and Chairman of Admin Re®, says: "This transaction is an important step in Swiss Re's strategy to redeploy capital to areas where we see growth opportunities and which deliver attractive shareholder returns. Admin Re® will continue to focus on the UK, where we have developed a solid pipeline of potential acquisitions and successfully signed a transaction with HSBC earlier this year."
Admin Re® has seen significant growth in its UK portfolio since the start of the year, reinsuring 400 000 individual and group pension and related annuity policies with GBP 4.2 billion in unit-linked assets from HSBC Life (UK) Ltd.
The sale of Aurora is expected to close in early 2015 and is subject to approval by the relevant regulators.
Swiss Re Admin Re®
Admin Re® provides risk and capital management solutions by which Swiss Re acquires closed books of in-force life and health insurance business, entire lines of business, or the entire capital stock of life insurance companies. Swiss Re assumes responsibility for all risks of the acquired block of business and typically assumes responsibility for administering the underlying policies. Supported by the capital strength and risk diversification of the Swiss Re Group and its companies, Admin Re® solutions help clients free up capital to redeploy to new business opportunities while reducing administrative burdens. Swiss Re is a leader in this field having proven its execution capability with more than 50 transactions since 1998 spanning a range of product types. For more information about Admin Re®, please visit: www.swissre.com/adminre.
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- deterioration in global economic conditions;
- the Group’s ability to maintain sufficient liquidity and access to capital markets, including sufficient liquidity to cover potential recapture of reinsurance agreements, early calls of debt or debt-like arrangements and collateral calls due to actual or perceived deterioration of the Group’s financial strength or otherwise;
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- uncertainties in valuing credit default swaps and other credit-related instruments;
- possible inability to realise amounts on sales of securities on the Group’s balance sheet equivalent to their mark-to-market values recorded for accounting purposes;
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- uncertainties in estimating reserves;
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- mortality, morbidity and longevity experience;
- policy renewal and lapse rates;
- extraordinary events affecting the Group’s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events;
- current, pending and future legislation and regulation affecting the Group or its ceding companies and the interpretation of legislation or regulations;
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- changing levels of competition; and
- operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks.
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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