Swiss Re pockets GE insurance unit for $7.4bn

ZURICH: Swiss Re said on Monday it had completed the acquisition of GE Insurance Solutions for $7.4bn to create the world’s largest reinsurer.

GE Insurance Solutions would be integrated into Swiss Re over the next 18 months, adding momentum to Swiss Re’s sustainable earnings growth, the company said in a statement.

With the GE deal, Swiss Re has pole-vaulted into the position of the world’s biggest reinsurer by premium volume, and the most diversified, ahead of rival Munich Re, and has acquired a commanding position in the US, the world’s largest reinsurance market.
Swiss Re had discussed the possibility of acquiring GE’s British life business, GE Life, but the two sides could not agree on terms, a spokesman for the Swiss reinsurer said.

“Our value assumptions did not match those of GE... Our understanding of the business and their understanding did not meet,” said the spokesman, adding that talks over GE Life had been non-exclusive.

South African insurer Sanlam said last month it had called off talks about buying GE Life. The financing for the GE Insurance Solutions deal comprised cash, a rights issue, mandatory convertibles and hybrid debt.