Prudential’s US subsidiary Jackson National Life is to acquire part of Swiss Re’s US Life Assurance business for £398m.
Prudential is to buy SRLC America Holding Corp which has assets related to the business of around £6.7bn and around 1.5m policies.
Jackson National Life says the deal will increase its scale and income as well as diversifying its earnings through the amount it will generate from underwriting.
A stock market announcement says the acquisition will increase Jackson’s IFRS pre-tax earnings by £100m in the first year of ownership.
The deal is still subject to regulatory approval and is expected to be completed in the third quarter.
Jackson chief executive Mike Wells says: “This bolt-on acquisition is in-line with our strategy and is a great opportunity to increase the scale of our life business. It helps diversify Jackson’s earnings by increasing the amount of income we generate from underwriting activities thereby enhancing the quality of our earnings and our ability to remit more cash to the group.”