Swiss Re's Admin Re® enters into a transaction with HSBC and demonstrates commitment to the Admin Re® strategy

• 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.

Swiss Re 

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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• instability affecting the global financial system and developments related thereto;
• 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;
• the effect of market conditions, including the global equity and credit markets, and the level and volatility of equity prices, interest rates, credit spreads, currency values and other market indices, on the Group’s investment assets;
• changes in the Group’s investment result as a result of changes in its investment policy or the changed composition of its investment assets, and the impact of the timing of any such changes relative to changes in market conditions;
• 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;
• the outcome of tax audits, the ability to realise tax loss carryforwards and the ability to realise deferred tax assets (including by reason of the mix of earnings in a jurisdiction or deemed change of control), which could negatively impact future earnings;
• the possibility that the Group’s hedging arrangements may not be effective;
• the lowering or loss of one of the financial strength or other ratings of one or more Swiss Re companies, and developments adversely affecting the Group’s ability to achieve improved ratings;
• the cyclicality of the reinsurance industry;
• uncertainties in estimating reserves;
• uncertainties in estimating future claims for purposes of financial reporting, particularly with respect to large natural catastrophes, as significant uncertainties may be involved in estimating losses from such events and preliminary estimates may be subject to change as new information becomes available;
• the frequency, severity and development of insured claim events;
• acts of terrorism and acts of war;
• 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;
• legal actions or regulatory investigations or actions, including those in respect of industry requirements or business conduct rules of general applicability;
• changes in accounting standards;
• significant investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transactions;
• 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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