Swiss Re sells its UK subsidiary ReAssure to Phoenix Group. The transaction is valued at 3.25 billion GBP (4.3 billion USD).
The Swiss reinsurer will receive a cash payment of 1.2 billion GBP (1.6 billion USD) and shares in Phoenix accounting for a 13% to 17% shareholding. This cession will allow Swiss Re to have one seat on Phoenix' board of directors.
The number of shares will depend on the stock market value at the sale closing. According to the sale agreement, MS&AD Insurance [4] Group Holdings, a minority shareholder in ReAssure, will receive Phoenix' shares representing an 11% to 15% stake. The takeover, subject to approval by Phoenix' regulatory authorities and shareholders, is expected to be finalized by mid-2020.
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