Legal & General to Sell Closed Mature Savings Business
December 06 2017 - 2:00AM
Dow Jones News
By Oliver Griffin
Legal & General Group PLC (LGEN.LN) said Wednesday that it
will sell its closed mature savings business to Swiss Re Ltd.
(SSREY) subsidiary ReAssure for 650 million pounds ($873.6
million).
The business comprises mainly retail customers who hold
traditional insurance-based pensions, savings and investment
products, Legal & General said, adding that it had GBP33
billion in assets in the first half of 2017.
Swiss Re said that the move is consistent with its strategy to
acquire closed-life books in the U.K.
Legal & General said that the proceeds from the sale will be
satisfied in cash at the start of January 2018, with all profits
and transfers for the 2017 financial year to be retained by Legal
& General.
The transaction is expected to be completed in mid-2019 and
Legal & General expects that it will generate a small increase
in the group's solvency 2 ratio--an important metric in the
insurance industry--with net proceeds to be reinvested in growth
opportunities for its core businesses.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
December 06, 2017 02:45 ET (07:45 GMT)
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