Zurich-based reinsurer Swiss Re has completed the acquisition of GE Insurance Solutions, adding a bit more muscle to the world’s largest global reinsurer.

Swiss Re CEO Jacques Aigrain says the move highlights the company’s leadership position and the direction it plans to head in the future.

“We will now move swiftly to integrate GE Insurance Solutions, adding new talents to our global workforce and building on the benefits of an enlarged client base and expanded product offerings.” 

Swiss Re paid a total of $US7.4 billion ($9.95 billion) for the group, which will be integrated into Swiss Re over the next 18 months. The value of GE is expected to increase $US1.7 billion ($2.28 billion) through cash capital contributions from General Electric (GE) and earnings which Swiss Re reimbursed to GE on closing.

“Cost synergies” of at least $US300 million ($403.5 million) a year are expected to be realised by the end of next year.

Operations of the companies will be merged, leading to an overall reduction of office locations and staff reductions in a number of areas.