Swiss Re has closed the sale of its Admin Re® US business (REALIC) to Jackson National Life Insurance Co.
The transaction that was announced on 31 May 2012 has now received all necessary regulatory approvals.
The sale results in $933 million to Swiss Re, representing $663 million cash proceeds from the sale and a dividend of $270 million extracted from REALIC before the sale.
The estimated $0.4 billion US GAAP loss on this transaction has been recognised in two steps. As announced on 9 August this year, a USD 1.0 billion loss was recorded in the second quarter 2012 results and an estimated gain of USD 0.6 billion will be included in the third quarter 2012 results. The gain in the third quarter is predominantly due to recycling of previously unrealised gains on the investments backing the insurance liabilities transferred to Jackson National Life Insurance Co.
Swiss Re, sale, Admin Re, Jackson National Life Insurance Co.