Swiss Re, which had previously received shares in Phoenix Group Holdings Plc as part of its swoop for the UK closed-book consolidator ReAssure, has sold a 6.6% stake in the British giant. In a press release today, Swiss Re said it sold part of its Phoenix stake for £ 437 million. The sale is expected to close on Friday and will take place via an accelerated bookbuilding process. “The sale came about as part of a regular review and realignment of Swiss Re’s investment portfolio and is in line with the Group’s overall investment strategy for equities and alternative investments,” said the reinsurer, headquartered in Zurich. “In connection with the sale, Phoenix Swiss Re has agreed to conduct this transaction before the lock-up agreement between the parties expires on July 23, 2021.” According to Swiss Re, the transaction is expected to result in a low single-digit increase in the Swiss solvency test rate . Meanwhile, the impact on US GAAP (generally accepted accounting) results is not expected to be significant. The group added, “Swiss Re has a lock-up agreement on its remaining stake of approximately The remaining stake will continue to be valued at US GAAP earnings.”
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