MS&AD invests additional £315m in Swiss Re’s ReAssure

Swiss Re has reached an agreement with Japanese insurance group MS&AD Insurance Group Holdings (MS&AD) for a further investment of £315 million into ReAssure, Swiss Re's UK closed life book consolidator.

MS&AD, which currently holds a 15 percent minority stake in ReAssure, will have a total shareholding of 25 percent as a result of the transaction. The transaction value is based on the £3.5 billion valuation of ReAssure agreed between the two parties in October 2017 adjusted for subsequent dividends and capital injections made into ReAssure in connection with ReAssure's acquisition of 1.1 million life policies from Legal & General announced in December 2017.

Earlier in December 2018 Swiss Re has appointed Mark Hodges as new CEO of ReAssure.

The reinsurer is exploring a potential initial public offering (IPO) of ReAssure in 2019.

"As we continue to work towards the potential IPO of ReAssure in 2019, the increase of MS&AD's stake to 25 percent is a strong vote of confidence from our minority shareholder and long-term partner,” said Thierry Léger, CEO Swiss Re Life Capital. “We are delighted to have them as investors alongside us and together we remain committed to supporting ReAssure in its strategy of leading the way in UK life and pensions consolidation," Léger added.

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