The closed life transaction would be Swiss Re’s largest Admin Re deal to date, says AM Best

The ratings of Swiss Reinsurance Company (Swiss Re) remain unchanged following the announcement that it has agreed with Standard Life to acquire certain Resolution closed life books if Standard Life’s offer to purchase Resolution is completed.

The transaction would be Swiss Re’s largest Admin Re deal to date, adding approximately £31bn ($64bn) of assets to its consolidated balance sheet. Swiss Re intends to finance the fixed purchase price of £2.35bn ($4.8bn) through a combination of debt and internal resources.

AM Best will fully evaluate this transaction once Standard Life’s offer is completed, including the impact on Swiss Re’s capitalisation. It will also focus on the quality of the business acquired, the profit emergence patterns assumed and Swiss Re’s ability to recoup the acquired present value of future profits.