Bulletin: Sale Of ReAssure To Phoenix Unlikely To Have Material Impact On Swiss Re's Capitalization

LONDON (S&P Global Ratings) Dec. 6, 2019--S&P Global Ratings said today that it expects the Swiss Re group to maintain its 'AAA' risk-based capital after selling ReAssure Group PLC to Phoenix Group Holdings. The sale leaves Swiss Re holding a large stake in Phoenix (13%-17%), which could expose its capital to some volatility. This is likely to be offset by the divestment of the capital-intensive business of ReAssure. From a regulatory perspective, Swiss Re estimates that the transaction will result in a 12 percentage point increase in its group Swiss solvency test ratio. ReAssure's future has been up in the air since an IPO was first mooted in August 2018; the planned IPO was suspended in July 2019. This deal,

...December 6, 2019 LONDON (S&P Global Ratings) Dec. 6, 2019--S&P Global Ratings said today that it expects the Swiss Re group to maintain its '###' risk-based capital after selling ReAssure Group PLC to Phoenix Group Holdings. The sale leaves Swiss Re holding a large stake in Phoenix (13%-17%), which could expose its capital to some volatility. This is likely to be offset by the divestment of the capital-intensive business of ReAssure. From a regulatory perspective, Swiss Re estimates that the transaction will result in a 12 percentage point increase in its group Swiss solvency test ratio. ReAssure's future has been up in the air since an IPO was first mooted in August 2018; the planned IPO was suspended in July 2019. This deal, which values ReAssure at ú3.25 billion, removes the ongoing uncertainty regarding its future. Swiss Re will receive ú1.2 billion in cash and the balance as shares in Phoenix. ReAssure's minority shareholder, MS&AD, will also receive shares in Phoenix, giving it a...

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