Swiss Re announced it had agreed to acquire Dallas-based Southwestern Life Holdings, Inc., which specializes in life, health, annuities and long term care products, in an all cash transaction valued at $171 million.
The new deal comes just days after Swiss Re agreed to acquire Conning, an investment management company. Southwestern was created out of the bankruptcy of PennCorp last year, and registered a net loss of $69.1 million for the year 2000. But Swiss Re Life & Health America Holding Co., the largest life and health reinsurer in the U.S. will pay a 35 percent premium over recent share value to acquire the company.
Swiss Re acquired two other PennCorp subsidiaries before it filed for bankruptcy, and this new offer has already received the approval of directors holding 53.2 percent of Southwestern’s shares.