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.
Ian McKellen and Patrick Stewart bromance continues: X-Men star gushes about 'pussy cat' BFF Patrick Stewart
David Cameron stung by jellyfish: PM hurt after ignoring advice of locals while on holiday
South Korea ferry: Vice principal rescued from sinking ship found hanged
Hollande's affair: Catherine Deneuve and Sophie Marceau in war of words over President's relationship with Julie Gayet
Kim Jong-un, crowds and contraband kit: Inside North Korea with the the Pyongyang marathon winner
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 KFC 'sorry' after lesbian couple are kicked out of Bath restaurant for 'heavy petting'
- 2 Dylan Tombides: West Ham confirm 20-year-old striker has died after battle with cancer
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
- 5 PFA Player of the Year: Luis Suarez, Daniel Sturridge and Steven Gerrard all nominated as Liverpool dominate award shortlist
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...