British life insurer Phoenix in talks to buy Admin Re unit from Swiss Re

12 Jul 2013

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British life insurer Phoenix Group is in preliminary talks to buy the Admin Re unit of Swiss Re, in a deal that may be worth around £3 billion ($4.5 billion).

Both companies said that they were in talks, but Phoenix said a potential deal would see Swiss Re take a minority stake in Phoenix, indicating that the deal could probably be a stock transaction.

But both insurers declined to indicate the value of the transaction, but Sky News reported that the deal could be worth £3 billion.

"There is no certainty that these discussions will lead to any transaction. Further statements will be made if and when appropriate," Phoenix today said in a statement.

Phoenix, one of the largest providers of insurance services in the UK, was founded by British entrepreneur Hugh Osmond, and was formerly known as Pearl Group.

The company, which has a market value of about £1.5 billion, has £68.6 billion in assets under management serving over 6 million policyholders.

Zurich-based Swiss Re Group is the world's second-largest reinsurer with total assets worth $215 billion, and 2012 revenues of $33.6 billion.

Admin Re provides risk and capital management solutions that enable Swiss Re to assumes closed books of in-force life and health insurance business, entire lines of business, or the entire capital stock of life insurance companies.

Admin Re solutions help clients to divest non-core blocks of business, thus reducing administrative costs and freeing up capital.

According to Sky News, the merger would create a business with over £100 billion under management and close to 10 million policy holders.

Last year, Swiss Re sold its US Admin Re to Jackson National Life Insurance for $600 million.

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