Swiss Re ReAssure buys Quilter's UK closed book business for £425m after IPO suspension

Swiss Re's ReAssure is acquiring Quilter's UK closed book business, consisting of Old Mutual Wealth Life Assurance and its subsidiary Old Mutual Wealth Pensions Trustees, including about 300 employees, for a total consideration of £425 million.

The announcement follows the reinsurer's decision to suspend its UK closed life book business ReAssure's planned initial public offering (IPO) on July 11 due to unfavourable UK primary market conditions. However, Swiss Re said in its second quarter 2019 results briefing that it intends to retain the objective to reduce its ownership in order to de-consolidate ReAssure.

The acquisition will be funded from ReAssure's internal resources and is expected to be completed by the end of 2019, subject to regulatory approval.

It will add over 0.2 million customer policies and £12 billion of assets, making ReAssure's total policy count to 4.5 million and assets under administration to £81 billion.

ReAssure expects the transaction to deliver substantial synergies and increase future cash generation potential.

Thierry Léger, CEO of Swiss Re's life capital business unit, said: “This acquisition continues ReAssure's success in capturing attractive opportunities in a rich pipeline of potential transactions and demonstrates the strength of its business model and management team. We remain fully supportive of ReAssure as the company continues to pursue its growth strategy and build its cash generating capacity."

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