Private Equity Firm Buys Swiss Re Asset Manager Conning
June 16 2009 - 11:10AM
Dow Jones News
New York private equity firm Aquiline Capital Partners LLC said
Tuesday it has acquired insurance industry asset manager and
researcher Conning & Co. from Swiss Reinsurance Co.
(SWCEY).
The deal includes include Conning's U.S. and European
businesses. The company did not disclose the purchase price.
Swiss Re acquired Conning in 2001 from MetLife Inc. (MET). In
recent quarters, asset write-downs and lower investment gains have
taken a toll on the Zurich-based company's earnings, and it has
taken steps to reduce its exposure to losses.
"Conning has an excellent reputation with a long-standing
presence in the insurance industry and a leading market position,"
said Jeff Greenberg, chief executive of Aquiline, in a press
release. "We look forward to working with management to expand
Conning's position as a premier specialty insurance asset
management and service provider."
Aquiline called Conning the largest independent insurance asset
manager and the third-largest insurance general account manager
globally, with approximately $70 billion of general account assets
under management and $100 billion of total assets under
contract.
After taking a loss in 2008 and reporting weak earnings in the
first quarter, Swiss Re has been looking for ways to pare back.
Over the past year, Warren Buffett's Berkshire Hathaway Inc.
(BRKA BRKB) has taken an increasing role in Swiss Re.
In March, Berkshire Hathaway made a $2.6 billion investment in
Swiss Re. That followed a deal made last year under which Berkshire
Hathaway reinsured a portion of Swiss Re's property/casualty
exposure and took a 3% stake in the company's common stock.
-By Lavonne Kuykendall, Dow Jones Newswires; 312- 750-4141;
lavonne.kuykendall@dowjones.com