Softbank has raised eyebrows after a confirmation it is in talks with Swiss Re about taking a minority stake in the insurance behemoth.
The pair are "engaged in preliminary discussions", Swiss Re revealed in a statement this morning. However, "there is no certainty that any transaction will be agreed".
"I don't quite get this Softbank interest in Swiss Re," said Mirabaud Securities global thematic co-head Neil Campling.
Softbank is supposed to be more a tech visionary business and not a conglomerate. Getting into insurance in a disruptive way, like their acquisition of Lemonade which uses AI to accelerate claims processing, does make sense, but not traditional reinsurance.
He continued: "Investing in an overcapitalised industry that has no obvious synergies with any of the other holdings can only lead to an even greater discount to the value of its holdings - because it will result in a clear general industry conglomerate, not a leading tech visionary company."
Softbank's spending spree has continued at pace. Recent accounts filings revealed around a third of its $100bn Vision Fund have already been deployed.
In January, Softbank invested €460m in Auto1, a Berlin-based online marketplace for buying and selling cars.