SWISS REINSURANCE GROUP, the firm behind the construction of City skyscraper the Gherkin, has sold off its run-off management unit in a deal valued at up to £38m. <br /><br />The firm has sold its PRO unit to UK-based run-off firm consolidator Tawa, as it fights to offset losses made from investments turning sour in the credit crunch. <br /><br />Reinsurers provide insurance to insurers, allowing them to mitigate the risks they are taking on. Run-off management firms specialise in running portfolios of reinsurance contracts that are no longer actively underwriting deals. <br /><br />Tawa said in a statement it had snapped up PRO for a cash payout of £4m and deferred consideration of up to £12m, depending on the unit’s earnings over the five years to the end of 2014. Plus, prior to the acquisition Swiss Re is set to receive dividends of £22m from the PRO companies.<br /><br />PRO marks a key acquisition for Tawa as the consolidator continues to snap up similar businesses with an eye to creating a single run-off giant. <br />Chief executive Gilles Erulin said as part of the deal Swiss Re has agreed to continue to use PRO as its preferred run-off management provider.<br /><br />Tawa also yesterday issued interim results for the six months to end-June. It said it had made a pre-tax loss of $2.1m (£1.3m) over the period, compared to an $11.7m profit in the same period the previous year.