Japan's Softbank is nosing around Switzerland for its next investment. The move would mark a further step into financial services for the erstwhile mobile phone firm.
Zurich-based insurer Swiss Re said late on Wednesday that it is in talks with Softbank, in which the Japanese firm might take a minority stake in the Swiss reinsurance giant, which is worth $33.9 billion at current market value.
«Discussions are at a very early stage. There is no certainty that any transaction will be agreed, nor as to the terms, timing, or form of any transaction,» Swiss Re said in a brief statement on its website following a report in «The Wall Street Journal» on the talks.
The move is the latest effort under Chief Executive Masayoshi Son to move Softbank further away from its roots in mobile phones into stakes in everything from Uber and Alibaba to British software giant Arm.
Ex-Deutsche Star
Last year, it shut a $100 billion venture fund advised by former Deutsche Bank trading star Rajeev Misra to invest in technology stocks. By contrast, Swiss Re is a low-tech, unexciting investment for Softbank. Swiss Re said little about the Japanese conglomerate's motivation, and Softbank wasn't immediately available for comment.
The «WSJ» reported that SoftBank wants to sell Swiss Re’s insurance by using technology, not insurance brokers, through other companies that the Japanese firm is invested in, such as We Work. Last year marked Softbank's first foray into finance when it bought U.S. hedge fund Fortress – the previous employer of Misra, who also spent two years at UBS.
AA-Rating Vs Junk
Softbank would be the first big investor in Swiss Re since Blackrock, which snapped up a 5 percent stake 18 months ago. The world's second-largest after Munich Re enjoys a AA-rating, while Softbank was cut to junk five years ago, when it began its spending spree by gobbling up U.S. phone carrier Sprint.
Softbank co-founder, Chairman, and CEO Son has taken market-watchers by surprise in the past, including with the massive tech fund and his public support for U.S. President Donald Trump's efforts to create U.S. jobs.
