Swiss Re to acquire UK GE Life business for GBP 465 million

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13 Oct 2006 CET – Swiss Re has agreed to acquire a group of companies which together comprise the “GE Life” business of General Electric Company (GE). The cash purchase price is GBP 465 million, including GBP 260 million for statutory net assets. The transaction will provide further scale and infrastructure for Swiss Re’s Admin ReSM business in the United Kingdom and is Swiss Re’s largest Admin ReSM deal to date.

Swiss Re will acquire around 400 000 policies with total assets of approximately GBP 8 billion. The portfolio is composed primarily of savings and income retirement planning products. It also includes the National Mutual Fund acquired by GE Life in 2002. Completion is anticipated by the end of 2006 subject to regulatory approvals.

GE Life will continue to write new business through financial advisers, under a new brand name to be announced in 2007.

Swiss Re’s CEO Jacques Aigrain welcomes today’s announcement: “Swiss Re’s strong capital base combined with our experience in managing UK life portfolios has placed us in the lead to acquire the GE Life business at a value-creating price. By acquiring GE Life’s operations, including its experienced team, we will complement our existing Admin ReSM platform and pave the way for further Admin ReSM growth.”

Swiss Re

Swiss Re is the world’s leading and most diversified global reinsurer. The company operates through offices in over 30 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated “AA-” by Standard & Poor’s, “Aa2” by Moody’s and “A+” by A.M. Best.

Admin ReSM

Admin ReSM is a core line of business for Swiss Re. This risk and capital management solution involves the acquisition of life insurance companies or the reinsurance of books of life and health policies. In addition to assuming the insurance risk, Swiss Re typically assumes responsibility for policy administration.