Admin Re, the life legacy unit of Swiss Re, has agreed to acquire a book of life and annuity policies from HSBC.
The unit will acquire over 400,000 individual and group pension and related annuity policies as well as £4.2 billion in unit-linked assets.
As part of the transaction, Swiss Re has also entered into a reinsurance agreement with HSBC which transfers certain economic risks and rewards of the business to Swiss Re from January 1, 2014 until completion of the transaction, which is expected to be in the second half of 2015.
Swiss Re said the transaction demonstrates its commitment to delivering tailored solutions to clients and strengthening Admin Re's market presence.
John Dacey, chairman of Admin Re and member of the Swiss Re group executive committee, said: "This transaction is an attractive opportunity for Admin Re and confirms our commitment to execute on the strategy to grow the Admin Re business in the UK. Transactions such as this allow Admin Re to maintain and increase the scale of its business and provide attractive shareholder returns.”
Admin Re, Swiss Re, HSBC, Europe, John Dacey