MS&AD will invest up to 800 million British pounds – equivalent to around 1 million Swiss francs – into ReAssure, a UK closed life book consolidator within the Life Capital Business Unit of Swiss Re.
According to a statement announcing the investment, MS&AD will initially invest 175 million pounds for a 5 per cent stake in ReAssure, but it has committed to invest 800 million pounds over a three-year period, with a maximum shareholding of 15 per cent.
Swiss Re intends to use the investment to support future growth and financial flexibility.
Despite selling part of ReAssure to the Japanese buyer, the closed book business will remain a core component of Swiss Re, stated the Zurich-based reinsurer.
“The UK closed book market is expected to offer significant consolidation opportunities in the near future,” said Matt Cuhls, CEO of ReAssure. “Thanks to this commitment from MS&AD and given our proven acquisition and integration capabilities, we are well-positive to seize these opportunities while delivering attractive returns.”
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