Reinsurance group Swiss Re AG will bolster its position as a leading closed life book consolidator in Britain through the acquisition of Guardian Financial Services, the Swiss group said on Wednesday.
Its business unit Admin Re has agreed to buy Guardian Financial Services from private equity firm Cinven for 1.6 billion pounds ($2.45 billion).
The acquisition would add 900,000 annuity, life insurance and pension policies in Britain and Ireland, boosting Admin Re’s UK business to over four million policies.
“The expected returns exceed our profitability targets for new business and represent an excellent fit with our Group strategy as well as with Admin Re’s capabilities and existing infrastructure,” Chief Executive Michel M. Lies said.
Closing of the acquisition, which is subject to regulatory approval, could be completed in early 2016 and would be financed from cash on the balance sheet as well as debt financing. Courtesy of Reuters