Swiss Re announced the sale of a 6.6% stake in Phoenix Group Holdings plc for £ 437 million (US $ 608 million). Following the sale, which is expected to close on June 25, Swiss Re will retain an additional 6.6% stake in Phoenix, the UK’s largest savings and pension company. Swiss Re originally acquired the shares when it sold its UK life insurance subsidiary ReAssure Group to Phoenix in 2020 through equity and alternative investments, ”the reinsurer said in a statement. It is currently estimated that the transaction will result in a low single digit increase in the group’s Swiss solvency test rate. The impact of the transaction on Swiss Re’s US GAAP results is not expected to be significant. The reinsurer has agreed a 90-day lock-up period on its remaining stake in Phoenix (meaning Swiss Re has committed not to sell these shares for at least three months). Moody’s Investors Service analyst Dominic Simpson commented that the rating agency rates the transaction as credit positive because it “will reduce Swiss Re’s asset concentration and have a small positive impact on its solvency”. Source: Merger of Swiss Re and Moody’s Topics Swiss Re Was this article valuable? Yes No Here are more articles you might like. Interested in Mergers? Receive automatic notifications on this matter.
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