Swiss Re, the world's second-biggest reinsurance group, says its Dutch NSC credit insurance subsidiary is to merge with a unit of Germany's Gerling insurance group.
The deal, announced on Wednesday, will create a new company - Gerling NCM - with a global market share of 25 per cent and expected gross premiums of SFr1.68 billion ($1 billion).
Swiss Re, which has a 90 per cent stake in NCM, will receive an undisclosed amount in cash and shares from the transaction and will own 25 per cent of the new company. A stock market flotation is being planned.
Gerling is 70 per cent owned by Rolf Gerling with Deutsche Bank being the only other shareholder.
swissinfo with agencies