Swiss Re to sell Fox-Pitt, Kelton to an investor group led by J. Christopher Flowers

10 February 2006, Zurich

Swiss Re has reached agreement to sell its wholly owned subsidiary Fox-Pitt, Kelton (FPK) to a new company formed by J.C. Flowers & Co. LLC as well as FPK management. Swiss Re will retain an interest in the new company through convertible preferred shares.

"We're pleased with the new ownership for Fox-Pitt, Kelton," says Swiss Re Chief Executive Officer Jacques Aigrain. "FPK has been instrumental in helping Swiss Re to build our capital markets capabilities. However, we believe this move better positions FPK for the future. With Swiss Re maintaining a stake in the new company, we can participate in its future success."
The transaction, which is subject to usual regulatory approvals, is expected to close during the first half of 2006. In addition to the transfer of the FPK group of companies, it is expected that employees working under the FPK brand plus a number of additional staff from Swiss Re's Capital Management and Advisory team will become part of the new organisation.

Notes to editors

Fox-Pitt, Kelton

Fox-Pitt, Kelton is a leading investment bank specialising in the financial services industry and focusing on the insurance, banking and related sectors worldwide. Founded in 1971 and acquired by Swiss Re in 1999, FPK's specialised businesses include equity research, sales and sales trading, capital raising, and advisory services. The company is based in London with offices in leading financial centers around the world.

Swiss Re

Swiss Re is one of the world's leading reinsurers and the world's largest life and health reinsurer. The company operates through more than 70 offices in over 30 countries. Swiss Re has been in the reinsurance business since its foundation in Zurich, Switzerland, in 1863. Swiss Re offers a wide variety of products to manage capital and risk. Traditional reinsurance products, including a broad range of property and casualty as well as life and health covers and related services, are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re currently has the following ratings: (i) from Standard & Poor's: long-term counterparty credit, financial strength and senior unsecured debt ratings of "AA (CreditWatch negative)", and a short-term counterparty credit rating of "A-1+", (ii) from Moody's: insurance financial strength and senior debt ratings of "Aa2" (on review for possible downgrade), and a short-term rating of "P-1" and (iii) from A.M. Best: a financial strength rating of A+ (superior) (under review with negative implications).

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  • the impact of future investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transaction, including the ability to efficiently and effectively integrate the GE Insurance Solutions operations into our own;
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  • changes in levels of interest rates;
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