Prudential to buy Swiss Re unit in $621m deal
Insurer Prudential said it is buying Swiss Re’s US-based life insurance business for $621m (£401m) in cash.
The purchase of SRLC America Holding Corp will be made through Prudential’s U.S. subsidiary Jackson National Life and is expected to close in the third quarter of 2012.
Prudential said the transaction is expected to contribute 100 million pounds to Jackson National’s pre-tax earnings in the first year of ownership. Pru estimates the embedded value of the acquisition will be £865m at the end of June, before cost savings.
Swiss Re will retain a portion of the business through reinsurance arrangements to be set up before the deal closes.
Trading in shares of Prudential was suspended in Hong Kong on Thursday pending the announcement. The shares are due to resume trading in the afternoon.