Swiss Re announced that it has reached an agreement to acquire Chicago-based CNA Financial’s individual life insurance business, as well as a life insurance servicing and administration facility in Nashville, Tenn., for approximately $ 690 million in cash.
“The in force business acquired, which will be put into run-off as the deal closes, will include term, universal and permanent life insurance policies and individual annuity products,” said the bulletin. It also noted that the deal is “subject to certain customary closing conditions and regulatory approvals,” and that CNA’s long-term care and structured settlement business is not included.
Swiss Re is already the world’s largest life and health reinsurer. The deal with CNA will reinforce that position, and fits in with the company’s strategy of acquiring “closed blocks of in-force life and health insurance” and administering the underlying policies.
“Under the agreement, Swiss Re Life & Health America Inc. will assume responsibility to administer approximately one million insurance policies in force with total assets of approximately USD 3.0 billion and annualized premiums of USD 440 million,” said the announcement.
The acquisition of CNA’s life insurance business is an attractive opportunity to further expand our Admin ReSM business,” stated Weldon Wilson, CEO of Swiss Re Life & Health America. “We believe that Admin ReSM transactions continue to provide excellent opportunities for both Swiss Re and our clients.”
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