A.M. Best Co. has commented that the ratings of Swiss Reinsurance Company (Swiss Re) remain unchanged following the announcement that it has agreed with Standard Life plc to acquire certain Resolution plc closed life books if Standard Life's offer to purchase Resolution is completed.
The transaction would be Swiss Re's largest Admin Re deal to date, adding approximately GBP 31 billion (USD 64 billion) of assets to its consolidated balance sheet. Swiss Re intends to finance the fixed purchase price of GBP 2.35 billion (USD 4.8 billion) through a combination of debt and internal resources.
A.M. Best will fully evaluate this transaction once Standard Life's offer is completed, including the impact on Swiss Re's capitalisation. A.M. Best would also focus on the quality of the business acquired, the profit emergence patterns assumed and Swiss Re's ability to recoup the acquired present value of future profits.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
