Reassure, a U.K.-based subsidiary of Swiss Re, recently cancelled its planned IPO. Today, it announced an acquisition instead – a bid to make it more attractive for investors?
Life insurer Reassure agreed to acquire 200,000 customer policies of its rival Quilter, Swiss Re said in a statement on Monday. Reassure will pay 425 million pounds ($517 million) and intends to complete the transaction by the end of 2019. The deal involves the transfer of 12 billion pounds in assets and 300 members of staff.
After the conclusion of the transaction, Reassure will have 81 billion pounds in assets under administration and 4.5 million policies. The company is working to build its business with a focus on generating cash.
Reassure in July postponed the planned IPO. Swiss Re said that the move was due to weaker demand from institutional investors in the U.K. The Swiss reinsurance giant had planned to list the U.K.-daughter on the London Stock Exchange.
