Swiss Re makes fixed price GBP 2.35 billion offer to acquire part of resolution from Standard Life, subject to completion

26 October 2007, Zurich

Swiss Re today signed an agreement to acquire certain Resolution plc closed life books from Standard Life plc for a fixed price of GBP 2.35 billion, conditional on Standard Life’s offer to acquire Resolution plc being completed. Under this contract, Swiss Re will purchase around 4.5 million Resolution policies and assets of approximately GBP 31 billion from Standard Life plc.

Jacques Aigrain, Chief Executive Officer of Swiss Re, commented: “This transaction demonstrates the size of the potential opportunities for our Admin Re® business and the role that it plays in steering our capital towards the most attractive returns. We expect this business to provide returns above our benchmark targets. The transaction fits perfectly within our Admin Re® business and will further expand our capacity for future transactions. It also demonstrates that our clear commitment to cycle management in our property and casualty business does not diminish our ability to grow earnings.”

According to the agreement signed today, Swiss Re will acquire certain Resolution assets from Standard Life, including the life operations Phoenix Life, Phoenix & London and Phoenix Pensions and the operations supporting these entities. Collectively, these entities manage approximately 4.5 million policies on behalf of their customers together with assets of approximately GBP 31 billion. Swiss Re has reached an agreement with Standard Life plc on the terms under which Standard Life will manage around GBP 24 billion of these assets on behalf of unit-linked and with-profits policyholders.

The closing is subject to the completion of Standard Life’s offer to acquire Resolution plc. Swiss Re expects to finance the transaction through a combination of debt and internal resources. Swiss Re’s share buy-back programme, as announced on 1 March 2007, is unaffected by this transaction.

The transaction will significantly expand Swiss Re’s Admin Re® business adding scale and talent to its existing UK platform. If this transaction is completed, Swiss Re’s global Admin Re® operations will manage over 12 million life policies.

Notes to editors

Swiss Re

Swiss Re is the world’s leading and most diversified global reinsurer. The company operates through offices in more than 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated “AA-“ by Standard & Poor’s, “Aa2” by Moody’s and “A+” by A.M. Best.

Cautionary note on forward-looking statements

Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements typically are identified by words or phrases such as "anticipate", "assume", "believe", "continue", "estimate", "expect", "foresee", "intend", "may increase" and "may fluctuate" and similar expressions or by future or conditional verbs such as "will", "should", "would" and "could". These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Swiss Re's actual results, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed or implied by such statements. Such factors include, among others:

  • the impact of significant investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transactions, including, in the case of acquisitions, issues arising in connection with integrating acquired operations;
  • cyclicality of the reinsurance industry;
  • changes in general economic conditions, particularly in our core markets;
  • uncertainties in estimating reserves;
  • the performance of financial markets;
  • expected changes in our investment results as a result of the changed composition of our invested assets or changes in our investment policy;
  • the frequency, severity and development of insured claim events;
  • acts of terrorism and acts of war;
  • mortality and morbidity experience;
  • policy renewal and lapse rates;
  • changes in rating agency policies or practices;
  • the lowering or withdrawal of one or more of the financial strength or credit ratings of one or more of our subsidiaries;
  • changes in levels of interest rates;
  • political risks in the countries in which we operate or in which we insure risks;
  • extraordinary events affecting our clients, such as bankruptcies and liquidations;
  • risks associated with implementing our business strategies;
  • changes in currency exchange rates;
  • changes in laws and regulations, including changes in accounting standards and taxation requirements; and
  • changes in competitive pressures.

These factors are not exhaustive. We operate in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.