Swiss Re Corporate Solutions, the commercial insurance arm of the Swiss Re Group, has agreed to acquire the Global Trade Credit and Surety business of QBE Insurance Group (QBE), subject to regulatory approvals.
Upon successful completion, the acquisition will strengthen Swiss Re Corporate Solutions’ primary credit and surety insurance offering and expand its capabilities to address the risk management needs of corporate clients. The transaction supports Swiss Re Corporate Solutions’ strategic ambition to diversify its portfolio and capture new growth opportunities.
QBE’s Global Trade Credit and Surety business operates in Australia, New Zealand and the UK. The portfolio is expected to generate annual revenues of approximately US$200 million. QBE’s French bonds business does not form part of this transaction.
Financial details of the transaction were not disclosed.
QBE said this business plays a critical role in helping companies manage payment and performance risk arising from their accounts receivable.
Globally, the specialty insurance market generates around US$19 billion in premium annually, with continued growth potential driven by heightened economic uncertainty, more complex supply chains and rising demand for sophisticated risk transfer solutions, Swiss Re said.
“This acquisition marks an important milestone for Swiss Re Corporate Solutions. It allows us to expand our offering in this attractive segment by strengthening our global credit and surety platform with a well-managed, profitable portfolio and a highly experienced team,” commented Ivan Gonzalez, CEO of Swiss Re Corporate Solutions.
“Our decision to divest QBE’s Global Trade Credit and Surety business to Swiss Re Corporate Solutions supports our ongoing strategic focus on optimising our portfolio, enabling the reallocation of capital and resources towards growth opportunities that align more closely with QBE’s long-term strategy,” according to Andrew Horton, chief executive officer of QBE Group, in a statement.
Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporations globally, backed by the financial strength of the Swiss Re Group, one of the world’s leading reinsurers.
The transaction is subject to various closing conditions including regulatory approvals, which are likely to take several months. During this phase, Swiss Re Corporate Solutions said it will work closely with QBE to ensure continuity for policyholders, brokers, and the team members, who are a key part of this transaction.
Source: Swiss Re Corporate Solutions and QBE Insurance
Topics Mergers & Acquisitions
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