Swiss Re reached an agreement with a Japanese insurance group to strengthening its ability to pursue future transactions.
ReAssure, a U.K. closed life book consolidator within the Swiss Re Life Capital Business Unit, agreed with a Tokyo based insurer an investment into ReAssure of up to 800 million pounds.
The Japanese insurance company MS&AD Insurance include Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. It is listed on the Nikkei 225.
Greater Capacity For Future Deals
MS&AD has agreed to acquire a 5 percent stake in ReAssure for 175 million pounds, which values ReAssure at 3.5 billion pounds. MS&AD has also committed to invest, for up to a three-year period from closing, 800 million pounds in total into the equity of ReAssure, with a maximum shareholding of 15 percent.
The MS&AD minority investment is consistent with Swiss Re's previously communicated strategy to provide ReAssure with enhanced financial flexibility to support its future growth. «This gives us greater capacity for future deals,» said Matt Cuhls, CEO of ReAssure.
