Reinsurer divests US life business for $621m

Swiss Re has sold its US Admin Re holding company (Reassure America Life Insurance Company) to Prudential’s Jackson National Life Insurance for a cash payment of $621m.

The transaction, which is expected to close in the second half of the year, remains subject to regulatory approvals. Swiss Re will retain certain blocks of its US-based life business, which will be secured via reinsurance arrangements before the transaction closes.

“After conducting a thorough review of the Admin Re portfolio and evaluating the level of capital allocated to the Admin Re US business, we concluded that we should redeploy the capital in other parts of our business,” said Swiss Re executive committee member and chairman of Admin Re David Blumer.

The transaction is expected to result in a dividend of $900m in cash to Swiss Re Ltd. Admin Re will continue to focus on the UK and Continental Europe.

“Swiss Re is committed to being a recognised force in the closed life book business through the Admin Re Business Unit,” said Swiss Re Group chief executive Michel Liès. “By executing transactions in select markets that meet our strict hurdle rates, Admin Re can continue to extend its global market presence, while further strengthening its class-leading asset and capital management disciplines.”