Swiss Re is to acquire the UK GE Life business of General Electric Company for GBP465 million in a move that will strengthen its UK Admin Re business.
As part of the transaction, Swiss Re will acquire around 400,000 policies with total assets of approximately GBP8 billion. The portfolio is composed primarily of savings and income retirement planning products. It also includes the National Mutual Fund acquired by GE Life in 2002. Completion is anticipated by the end of 2006 subject to regulatory approvals.
Earlier this year Swiss Re became the world’s largest reinsurance company after it completed the acquisition of the insurance units of General Electric for $7.8 billion. As a result of that acquisition GE gained a 9% stake in Swiss Re.
Swiss Re’s strong capital base combined with our experience in managing UK life portfolios has placed us in the lead to acquire the GE Life business at a value-creating price. By acquiring GE Life’s operations, including its experienced team, we will complement our existing Admin ReSM platform and pave the way for further Admin ReSM growth, said Swiss Re’s CEO Jacques Aigrain.