Thursday, December 14, 2017

MS&AD buys 15% stake in ReAssure

Japan’s MS&AD has entered into an agreement with Swiss Re to buy a stake of up to 15% in UK-based ReAssure Jersey One for £800 million (US$1.05 billion).

This follows from an earlier announcement back in August of two overseas transactions, including the US$1.6 billion acquisition of Singapore’s First Capital Insurance.

In a statement, MS&AD said that it hopes to learn about the dynamics of a closed-book life business given that ReAssure is an unlisted firm.

In closed-book companies, firms buy policy portfolios from other firms instead of underwriting new ones.

MS&AD is expecting to see a rise in policy portfolios up for sale as the industry contends with more stringent capital regulations and declining investment returns due to low interest rates.

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