12/6/2019, 8:47 AM (Source: TeleTrader)
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Phoenix to buy ReAssure from Swiss Re for £3.25B

Insurance company Swiss Re AG announced on Friday it reached an agreement to sell its subsidiary ReAssure Group plc to Phoenix Group Holdings plc in a deal worth £3.25 billion.

Phoenix will pay £1.2 billion in cash for ReAssure and Swiss Re will also get shares in Phoenix representing a 13% to 17% share in the firm, as well as a seat on its board of directors. Meanwhile, ReAssure's minority shareholder MS&AD Insurance Group Holdings Inc will receive shares in Phoenix representing an 11% to 15% stake. Swiss Re will also acquire MS&AD's 25% in ReAsssure as part of the deal.

"We believe this transaction maximises long-term value for Swiss Re shareholders. Swiss Re’s goal has been to deconsolidate ReAssure, and we are pleased to have found a strong buyer for the business," Swiss Re CEO Christian Mumenthaler stated. The transaction, which is subject to approvals by Phoenix shareholders and regulators, is expected to close in mid-2020.

Swiss Re earlier planned a public listing for ReAssure but gave up on the idea in July.

Breaking the News / NP