Prudential set to buy Swiss Re's US arm
The insurance giant Prudential is set to get a little bigger after striking a deal to buy Swiss Re's US life insurance business for $621m (£400m) in cash.
The UK's biggest insurance company said the purchase of SRLC America Holding Corp through its Jackson National Life Insurance subsidiary in the US continues its practice of growing through acquisitions.
Under the deal, Prudential will acquire £6.7bn of assets and about 1.5 million policies, adding £100m to its bottom line in its first year of ownership.
"This acquisition is in line with our strategy and is a great opportunity to increase the scale ofour life business," said Jackson National Life's chief executive, Mike Wells.
"It helps to diversify Jackson's earnings by increasing the amount of income we generate from underwriting activities, thereby enhancing the quality of our earnings and our ability to remit more cash to the group," he added.
SRLC represents the bulk of Swiss Re's Admin Re business in the US, which was set up to buy closed books of insurance policies from other companies that had decided to exit the industry. Swiss Re believed it could run these operations more profitably than the previous owners.
However, Swiss Re appears to have decided it can make more money elsewhere, and plans to use the proceeds from the sale to invest in potentially more profitable areas, such as its main reinsurance operation.
Swiss Re will take a $860m charge against its second-quarter profits on the disposal because the SLRC businesses book value is higher than yesterday's sale price.
- 1 Stem cells that can kill cancer have been engineered by scientists
- 2 Ricky Gervais and Dame Judi Dench back campaign to stop Thailand dog meat trade
- 3 Russell Brand says he will 'probably' give up acting to focus on his revolution
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Queen's first tweet: Reply telling Her Majesty to 'f*** off' broadcast on BBC News
Stem cells that can kill cancer have been engineered by scientists
Ottawa shooting: 'Sergeant-at-arms shot suspect at point-blank range after diving around pillar'
Russell Brand says he will 'probably' give up acting to focus on his revolution
McKamey Manor: This 'extreme' haunted house is the stuff of nightmares
Jack Bruce dead: Cream bass player dies of liver disease aged 71
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Tony Blair 'says Ed Miliband will lose 2015 general election'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Putin: The US is to blame for almost all the world's major conflicts
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...