Swiss Re agrees further minority investment by MS&AD into ReAssure, increasing its shareholding to 25%
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- Swiss Re has reached agreement with Japanese insurance group MS&AD Insurance Group Holdings, Inc. (MS&AD) for a further investment of GBP 315 million into ReAssure, Swiss Re's closed book business
Swiss Re has reached an agreement with Japanese insurance group MS&AD Insurance Group Holdings, Inc. (MS&AD), under which MS&AD will invest an additional GBP 315 million in ReAssure, Swiss Re's market-leading UK closed life book consolidator.
MS&AD, which currently holds a 15% minority stake in ReAssure, will have a total shareholding of 25% as a result of the transaction. The transaction value is based on the GBP 3.5 billion valuation of ReAssure agreed between the two parties in October 2017 adjusted for subsequent dividends and capital injections made into ReAssure in connection with ReAssure's acquisition of 1.1 million life policies from Legal & General announced in December 2017. The transaction is subject to regulatory approvals.
Today's investment demonstrates MS&AD's appreciation of ReAssure's strong franchise, built on the co-operation and mutual trust that has existed between MS&AD and Swiss Re for over 100 years on the back of their long-standing business relationship.
Thierry Léger, CEO Swiss Re Life Capital, said: "As we continue to work towards the potential IPO of ReAssure in 2019, the increase of MS&AD's stake to 25% is a strong vote of confidence from our minority shareholder and long-term partner. We are delighted to have them as investors alongside us and together we remain committed to supporting ReAssure in its strategy of leading the way in UK life and pensions consolidation."
Further to the announcement of 3 August 2018, Swiss Re is continuing to work towards a potential IPO of ReAssure during 2019, subject to market conditions.
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally. It is organised into three Business Units, each with a distinct strategy and set of objectives contributing to the Group’s overall mission.
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