Swiss Re to acquire Barclays Life Assurance
Swiss Re has agreed to buy the life insurance unit of British banking giant Barclays in a deal worth £735 million ($1.57 billion).
The reinsurer will take on 760,000 annuity contracts, life insurance and pension policies following the deal, which was announced on August 5.
Barclays Life Assurance controls about £6.8 billion ($14.5 billion) in assets under management. It generates about £350 million ($747 million) a year from existing policies but was closed to new business in 2001.
Swiss Re anticipates that further demand for life and non-life run-off products will allow the group to push further into markets in the UK and North America.
It announced the Barclays deal as the company released second-quarter financial results showing a net profit of CHF600 million ($622 million).
The Swiss Re property and casualty unit had a combined ratio of 92.3%, and recorded operating income of CHF800 million ($829 million).
CEO Jacques Aigrain said the strong performance of the reinsurer’s property and casualty business contributed to healthy operating earnings despite challenging market conditions.
The reinsurer will take on 760,000 annuity contracts, life insurance and pension policies following the deal, which was announced on August 5.
Barclays Life Assurance controls about £6.8 billion ($14.5 billion) in assets under management. It generates about £350 million ($747 million) a year from existing policies but was closed to new business in 2001.
Swiss Re anticipates that further demand for life and non-life run-off products will allow the group to push further into markets in the UK and North America.
It announced the Barclays deal as the company released second-quarter financial results showing a net profit of CHF600 million ($622 million).
The Swiss Re property and casualty unit had a combined ratio of 92.3%, and recorded operating income of CHF800 million ($829 million).
CEO Jacques Aigrain said the strong performance of the reinsurer’s property and casualty business contributed to healthy operating earnings despite challenging market conditions.