Phoenix buys Re’s ReAssure unit
The transaction is expected to close in mid-2020
Stocks impacted: Phoenix Group Holdings Plc (PHNX), Swiss Re AG (SRENH)
In further attempts to run the business more efficiently, Phoenix Group Holdings Plc said agreed to buy the British insurance unit of Swiss Re AG for 3.2 billion pounds. As part of the agreement Swiss Re will receive a cash payment of GBP 1.2 billion, shares in Phoenix representing a 13% to 17% stake and be entitled to a seat on its Board of Directors. The transaction, which is expected to close in mid-2020, will reinforce Phoenix’s position as Europe’s largest life and pensions consolidator with GBP 329 billion of assets under administration. It is expected that the deal will result in a 12% increase in Swiss Re’s Group SST ratio and generate economic profit of USD 0.3 billion. The transaction is subject to approvals by Phoenix’s shareholders and regulators.
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