Swiss Re to sell ReAssure to Phoenix Group

Swiss Re announced an agreement to sell its subsidiary ReAssure Group to Phoenix Group. As part of the agreement, which values ReAssure at £3.25 billion, Swiss Re will receive a cash payment of £1.2 billion, shares in Phoenix representing a 13% to 17% stake and be entitled to a seat on its Board of Directors. ReAssure’s minority shareholder, MS&AD Insurance Group, will receive shares in Phoenix representing an 11% to 15% stake. The respective number of shares Swiss Re and MS&AD receive will depend on Phoenix’s share price at closing of the sale, while the total shareholding of both companies is fixed at approximately 28%.

“We believe this transaction maximises long-term value for Swiss Re shareholders. Swiss Re’s goal has been to deconsolidate ReAssure, and we are pleased to have found a strong buyer for the business. The strategic rationale for the combination of the businesses is compelling, and we look forward to working together with Phoenix and to sharing the financial benefits of the combination.” – Christian Mumenthaler, Swiss Re’s Group CEO.

The transaction will reinforce Phoenix’s position as Europe’s largest life and pensions consolidator with £329 billion of assets under administration and more than 14.1 million policies, giving it an enhanced platform to pursue further growth opportunities.

The transaction is expected to close in mid-2020, subject to approvals by Phoenix’s shareholders, regulators and anti-trust authorities.