One of the largest reinsurance groups in Europe is considering a massive £1 billion stake sale in one of its units, according to reports.
According to Sky News, Swiss Re, one of the biggest consolidators of closed-life insurance policies on the continent, has been approaching investors about a potential stake in its Admin Re unit in an effort to boost its cashflow for possible acquisitions. The report states that initial talks have already been held with both sovereign wealth funds and pension funds – and that a deal could see one or more join as a substantial minority shareholder.
The search for an investor in Admin Re comes during a shake-up of the insurance industry’s closed-life sector, which is made up of companies that do not accept new business. Just last September, Admin Re bought out British competitor Guardian Financial Services for £1.6 billion and several other deals have been announced recently including Phoenix buying AXA’s pension and protection business back in May, which we reported here
, and Deutsche Bank considering selling its Abbey Life unit, which we reported here
The Admin Re investment efforts are said to be being run by Credit Suisse but are also at an early stage with no formal discussions with investors likely until after the summer.
A Swiss Re spokesman said it did not comment on speculation.
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