Swiss Re has acquired 300,000 life insurance policies and £1.6bn of assets from Alico.
It agreed the deal for an undisclosed sum last week via its business unit Admin Re, which acquires blocks of in-force life and health insurance business. Last November, MetLife bought AIG subsidiary Alico for £10.8bn.
Swiss Re executive board member and Admin Re chairman David Blumer says: “This transaction meets Admin Re’s rigorous assessment criteria and confirms our commitment to being a recognised force in the closed life book business.
“Transactions like this allow life insurance companies to monetise the value of in-force blocks of business while providing Swiss Re with attractive, diversified returns.”
P3 Wealth Management managing director Frank O’Donnell says: “Swiss Re obviously feels this is a profitable deal because it gains the regular income from the Alico book. This may signal a change of strategy for Metlife or it may be that Metlife is selling at a premium to fund other business.”
Master Adviser senior partner Roy McLoughlin says MetLife’s acquisition of Alico has effectively led to Alico pulling out of the UK protection market altogether.
Last November, MetLife ruled out launching an IFA protection proposition in the UK.
McLoughlin says: “It is a shame that another provider has effectively been removed from the market at a time when the market is in need of more competition.”