Talanx will book 214 million euros ($267 million) profit from the sale of its 5.03 percent stake in the Zurich-based life insurer in the fourth quarter, the company said in a statement from Hanover, Germany today.
The sale price of 217 Swiss francs ($225.4) per share compares with Swiss Life’s 223 Swiss franc closing price today. The company, in which Talanx was the biggest investor, climbed 20 percent this year.
Talanx left its profit forecast unchanged, saying it is targeting net income of at least 700 million euros for this year and next. Proceeds of the share sale will be used to cover the cost of adjusting valuations for underwriting positions and to “take account of a potential sustained phase of low-interest rates,” Talanx said.
Swiss Life will “remain an important sales partner” for Talanx, the German company said.
Deutsche Bank AG handled the sale, according to the bank.
Topics Mergers & Acquisitions Germany
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