Swiss Re swoops for more business in the US
The Swiss Reinsurance Company has announced a deal to acquire the life insurance business of CNA Financial in Chicago for $690 million (SFr860 million) in cash.
The world’s largest life and health reinsurer is also acquiring CNA’s life insurance servicing and administration facility in Nashville, Tennessee.
The move is one of the biggest “Admin Re” deals by the Zurich-based company. Admin Re involves Swiss Re taking over policies, premiums and staff from primary insurers who no longer want to run the business themselves.
Under the agreement, Swiss Re Life & Health America will assume responsibility to administer about one million insurance policies, with total assets of about $3 billion and annualised premiums of $440 million.
“The Admin Re business is more profitable than life reinsurance business,” said analyst Rene Locher at Kepler Equities.
CNA is the United States’ fourth largest commercial insurance writer and the 11th largest property and casualty company.
“Attractive opportunity”
“Attractive opportunity”
“The acquisition of CNA’s life insurance business is an attractive opportunity to further expand out Admin Re business,” commented Weldon Wilson, CEO of Swiss Re Life & Health America.
“We believe that Admin Re transactions continue to provide excellent opportunities for both Swiss Re and our clients,” he added.
The deal is subject to certain customary closing conditions and regulatory approvals.
swissinfo
Swiss Re is the world’s second-largest reinsurance company behind Munich Re.
Founded in 1863, Swiss Re operates from 70 offices in 30 countries, with a staff of more than 8,100.
The company recorded a loss in 2002 of SFr91 million and cut its dividend for the first time in nearly 100 years.
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