Swiss Re is to buy about 300,000 UK life insurance policies from American Life Insurance.

The Swiss reinsurer has not disclosed a price for the transaction, although it will also acquire £1.6 billion ($2.4 billion) in assets as part of the deal.

The policies will be managed by Admin Re, a Swiss Re subsidiary that specialises in buying life and health insurance businesses in run-off.

Admin Re Chairman David Blumer says the deal meets the assessment criteria of the company.

“This transaction confirms our commitment to being a recognised force in the closed life book business,” he said.

“Transactions like this allow life insurance companies to monetise the value of inforce blocks of business, while providing Swiss Re with attractive, diversified returns.”

Since 1998 Admin Re has struck more than 50 deals globally as part of a strategy to maximise value from closed books.

The American Life Insurance company was sold by AIG late last year to MetLife for $US16.2 billion ($15.1 billion).