Prudential set to buy Swiss Re's US arm
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.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.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments