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Investment   No regulatory approvals are expected

MS&AD to invest up to $1 billion in Swiss Re U.K. unit

Swiss ReReAssure, a UK closed life book consolidator within the Swiss Re Life Capital Business Unit, has reached agreement with MS&AD for an investment into ReAssure of up to GBP 800 million.

MS&AD has agreed to acquire a 5% stake in ReAssure1 for GBP 175 million, which values ReAssure at GBP 3.5 billion. MS&AD has committed to invest, for up to a three-year period from closing, GBP 800 million in total into the equity of ReAssure, with a maximum shareholding of 15%.

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The MS&AD minority investment is consistent with Swiss Re's previously communicated strategy to provide ReAssure with enhanced financial flexibility to support its future growth.

The commitment to invest the additional GBP 625 million will be satisfied through the issuance of primary equity to MS&AD (based on the same valuation formula) as ReAssure undertakes transactions in the future.

Once the 15% shareholding threshold is reached, both Swiss Re and MS&AD will subscribe to any further equity injection into ReAssure on a pro rata basis.

The acquisition of the initial 5% stake is subject to regulatory approval, and closing is expected to occur in the first quarter of 2018.

No further regulatory approvals are expected to be required for the additional MS&AD investments.




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