Swiss Re bolsters capital position as it wraps up ReAssure sale

Reinsurer Swiss Re has received a cash payment of £1.2 billion and 13.3 percent stake in Phoenix Group Holdings following the completion of the  sale of its subsidiary ReAssure Group.

The transaction has been completed following the receipt of all required regulatory and antitrust approvals.

Swiss Re believes the sale has bolstered its capital position, which it categorises as "very strong", with Group Swiss Solvency Test (SST) ratio above the target level of 220 percent as of July 1, 2020, including the impact from the sale of ReAssure and COVID-19 losses.

As part of the sale, Christopher Minter, head of principal investments and acquisitions at Swiss Re, will join the board of Phoenix.

Additionally, Hiroyuki Iioka, senior general manager, business development department for MS&AD, will also join the board of Phoenix.

Matt Cuhls will retain his position as CEO of ReAssure and will join the group's executive committee, alongside Michael Eakins who will join as group CIO as previously reported.

Andy Briggs, CEO of Phoenix Group, said: "I am delighted to confirm completion of the acquisition of ReAssure and would like to extend a warm welcome to our new colleagues joining Phoenix. The transaction marks another significant milestone on Phoenix's growth journey further strengthening the Group's key attributes of cash, resilience and growth and establishing the Group as the UK's largest long-term savings and retirement business."

John Dacey, Swiss Re group CFO, commented: “Our capital position remains industry-leading. The underlying performance of all our businesses is strong, and they continue to deliver on their strategic objectives, such as the completion of the ReAssure sale."