Swiss Re plans IPO of ReAssure in 2019

Swiss Re is exploring a potential initial public offering (IPO) of its UK closed life book business ReAssure in 2019.

In October 2017 Swiss Re reached an agreement with Japanese insurance group MS&AD for an investment into ReAssure of up to £800 million.

Securing third-party capital to pursue further closed book transactions is already part of Swiss Re's strategy, the company said. Given the size of potential opportunities that are expected to come up in the market over the mid-term, it is important for ReAssure to have access to substantial new capital to acquire additional closed books, according to Swiss Re.

Under Swiss Re's Swiss Solvency Test capital regime, ReAssure's asset-intensive business is subject to significant asset risk charges. Nonetheless, the closed book consolidation market remains an attractive growth area for Swiss Re, which is expected to remain a significant investor in ReAssure, the company said.

There can be no assurance that the exploration will result in an IPO of ReAssure, and there is no certainty as to the timing of, or the details relating to any such IPO, including its terms, structure or the size of Swiss Re's shareholding in ReAssure following any IPO, Swiss Re said.

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