Swiss Re Life & Health has revealed plans to grow its Admin Re business following its acquisition of...
Swiss Re Life & Health has revealed plans to grow its Admin Re business following its acquisition of Zurich's life business in August for a cash payment of US$240m (£150m). The Admin Re line of business is the acquisition of books of life and health policies that have been or will be placed into run off.
The reinsurer has revealed it hopes to acquire further books of business over the next two to three years. Any new lines of business will be incorporated into Admin Re until the policies expire or a claim has been made.
'Our objective is to build up a series of acquisitions over a certain period of time and feed them into the Admin Re business,' said Martyn Parker, chief executive of Swiss Re Life & Health UK.
'Over the next two to three years we are hoping to complete further acquisitions in the UK, such as a relatively small number of high value transactions, either acquiring small companies or blocks of new business,' he said.
Despite Swiss Re's plans for the expansion of its Admin Re business, Parker is keen to stress that it will not be a competitor to existing businesses in the market.
'We are not opening Admin Re to new business and, as a result, it will not be competition for those attracting new business in the market. The principal aim is to build up a solid foundation, into which we can feed further transactions, ' he said.
Subject to regulatory approval, the Zurich Life transaction is expected to close by the end of 2003. On completion, it is anticipated some Zurich staff will join Swiss Re to assist with the administration of the life policies. Details surrounding the exact figure have yet to be finalised.
Sandy Leitch, CEO at Zurich Financial Services' UKISA/ Asia Pacific business division, explained the sale: 'We are transforming our life businesses in the UK, sharpening our focus, reducing expenses, strength-ening our overall capital position and growing profitable new business.'
