Thierry Léger, CEO of Swiss Re's Life Capital: “I am delighted that we partner with a like-minded, long-term investor that will invest with us side-by-side.''

Thierry Léger, CEO of Swiss Re's Life Capital: “I am delighted that we partner with a like-minded, long-term investor that will invest with us side-by-side.''

MS&AD invests £800mn in Swiss Re life consolidator

06 October 2017

Big three Japanese insurance group MS&AD has agreed to purchase a 5 percent stake in Swiss Re's UK life closed book consolidator for £175mn with a commitment to invest a total of £800mn, it was revealed today (6 October).

MS&AD has committed to invest for a further three years giving it a maximum shareholding of 15 percent.

The investment values the Swiss Re consolidator at £3.5bn.

Swiss Re said the investment is consistent with the “previously communicated strategy to provide ReAssure with enhanced financial flexibility to support its future growth.”

Once a 15 percent shareholding threshold is reached, both companies will maintain their ownership stakes by subscribing to further equity investments on a pro rata basis.

Thierry Léger, CEO of Swiss Re's Life Capital, commented: “I am delighted that we partner with a like-minded, long-term investor that will invest with us side-by-side. The closed book business is a core component of Swiss Re’s overall strategy". 

While Matt Cuhls, CEO of ReAssure, noted: “This is a positive step and gives us greater capacity for future deals. The UK closed book market is expected to offer significant consolidation opportunities in the near future".

The investment remains subject to regulatory approval. re