Global reinsurance giant Swiss Re has announced the completion of the sale of its ReAssure Group plc subsidiary to Phoenix Group Holdings plc, following the receipt of all regulatory and antitrust approvals.
As previously announced, Swiss Re received a cash payment of £1.2 billion and shares in Phoenix representing a 13.3% stake.
Applications have now been made to the FCA and the LSE for the 277,277,138 new ordinary shares of Phoenix being issued to Swiss Re, representing roughly 27.8% of the enlarged share capital of Phoenix, to be admitted to the premium listing segment of the FCA’s Official List and to trading on the LSE’s main market for listed securities.
Additionally, and in accordance with an agreement between Swiss Re and ReAssure’s minority shareholder, MS&AD Insurance Group Holdings, upon admission Swiss Re will transfer 144,877,304 shares representing roughly 14.5% of the enlarged share capital of Phoenix to MS&AD.
Matt Cuhls is set to retain his role as Chief Executive Officer (CEO) of ReAssure Limited and will join the Group’s Executive Committee, alongside his ReAssure colleague Michael Eakins, who will join as Group CIO as previously reported.
“I am delighted to confirm completion of the acquisition of ReAssure and would like to extend a warm welcome to our new colleagues joining Phoenix. The transaction marks another significant milestone on Phoenix’s growth journey further strengthening the Group’s key attributes of cash, resilience and growth and establishing the Group as the UK’s largest long-term savings and retirement business,” said Andy Briggs, CEO of the Phoenix Group.
Under the agreement, Christopher Minter, Head of Principal Investments and Acquisitions at Swiss Re, will join the Board of Phoenix as a non-executive director alongside Hiroyuki Iioka, Senior General Manager, Business Development Department for MS&AD.
Commenting on the new Board members, Nicholas Lyons, Phoenix Chairman, said: “I am extremely pleased that Christopher Minter and Hiroyuki Iioka are joining the Phoenix Board. They bring substantial experience and executive skills to our Board and additional international perspectives.”
Phoenix has also revealed that with effect from admission, Campbell Fleming will leave the Phoenix Board.
“On behalf of the Board, I would like to thank Campbell for his excellent, insightful contribution since joining the Board at the start of Phoenix’s strategic partnership with Standard Life Aberdeen,” said Lyons.
According to Swiss Re, the sale of ReAssure has bolstered its capital position, which remains “very strong” despite the firm recently reporting COVID-19 impacts of $2.5 billion for the first half of 2020.
Including the impacts of the ReAssure sale and losses from the COVID-19 pandemic, Swiss Re states that its Group SST ratio sits above the target level of 220% as of July 1st, 2020.