Swiss Re’s subsidiary ReAssure has agreed to acquire the UK closed book business of Quilter plc, consisting of Old Mutual Wealth Life Assurance and its subsidiary Old Mutual Wealth Pensions Trustees Limited.
ReAssure, which is acquiring the business for £425m, will gain over 200,000 customer policies and £12bn of assets. The transaction will increase ReAssure’s total policy count to 4.5 million and assets under administration to £81bn.
Thierry Léger, chief executive of Swiss Re’s life capital business unit, said the acquisition “continues ReAssure’s success in capturing attractive opportunities in a rich pipeline of potential transactions and demonstrates the strength of its business model and management team”.
Quilter said the sale will help to solidify its position as an advice-led, modern wealth manager.
“The growth profile of the group following the sale is expected to be enhanced since Quilter Life Assurance is in run-off. Further benefits of the transaction include increased focus on the delivery of Quilter’s growth strategy and the execution of its optimisation initiatives,” it added.
The transaction is expected to be completed by the end of 2019, subject to regulatory approval.