Further to the statement on 12 July 2013 by Phoenix Group Holdings regarding its preliminary discussions with Swiss Re Ltd in relation to a possible combination of Phoenix and Swiss Re’s UK Admin Re® Business Unit, Swiss Re and Phoenix today confirm that such discussions have terminated as the parties have been unable to agree the terms on which a mutually acceptable transaction could take place.
Admin Re® will continue to seek to fully establish its franchise value in the UK and Continental Europe and will also continue to actively seek to explore new opportunities that meet Swiss Re’s investment criteria and hurdle rates. Swiss Re remains confident in Admin Re®’s ability to contribute to Swiss Re’s financial targets, meet its stated gross cash generation levels and deliver on its strategic aim of being a recognised force in the closed life book business.
Admin Re® will continue to execute against its business plan, further streamlining its business through management actions targeted at productivity measures and asset re-balancing.
Swiss Re Group’s capital management plans and priorities are unaffected by this announcement.
