Swiss Re announced on Wednesday that its Admin Re unit has agreed to acquire individual and group pension and related annuity policies from HSBC Life (UK) Limited.
Under the terms of the agreement, Admin Re will acquire over 400,000 individual and group pension and related annuity policies, as well as £4.2 billion ($7.0 billion) in unit-linked assets.
In a statement, John R. Dacey, Chair of Admin Re and member of the Swiss Re Group Executive Committee, said the deal confirm’s Swiss Re’s 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,” he said.
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 deal 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 certain economic risks and rewards of the business to Swiss Re from Jan. 1, 2014 until the transaction is complete.
No other terms of the deal were disclosed.
Source: Swiss Re