Zurich Financial Services
04 June 2007
Zurich to divest part of its UK annuity business
Zurich Financial Services
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Zurich, June 4, 2007 - Zurich Financial Services Group (Zurich) has today
announced that its UK subsidiary, Zurich Assurance Ltd, has signed an agreement
to transfer part of its UK annuity business to Swiss Re. In the future, that
business will be managed by Windsor Life Assurance Company Limited, a Swiss Re
subsidiary.
Zurich and Swiss Re have signed a reinsurance agreement which transfers the
benefits and risks of the portfolio of annuities 'in payment' as of January 1,
2007, from Zurich to Swiss Re. Zurich will transfer approximately GBP 3.7
billion in assets and approximately GBP 3.9 billion in liabilities. Together
with Swiss Re, Zurich will initiate the formal transfer in order to make Swiss
Re the insurer under the annuities. The completion of this transaction is
subject to certain conditions including regulatory and court approvals. None of
Zurich's annuity customers will be materially affected by the transaction and
their terms and conditions will continue to apply.
Zurich has not actively marketed its annuity business in the UK since 2005,
choosing instead to focus on its core business of pensions, investments and
protection. This transaction is in line with Zurich's current strategy to
release capital and cash to focus on enhancing its propositions in its chosen
target markets.
Paul van de Geijn, Chief Executive Officer of Zurich Global Life, said, 'Zurich
reviews and adapts its product offerings constantly to serve its customers
better and to remain competitive. This allows us to focus our resources on our
core business where we are pursuing sustained profitable growth.'
The annuity portfolio transferred covers approximately 220,000 policies. Zurich
will be writing to all affected customers later this year as part of the process
to formally transfer the book to Swiss Re. It is expected that the transaction
will have a positive impact of approximately USD 100 million on the Zurich
European Embedded Value (EEV). This transaction will be accretive on conclusion
of the formal transfer.
Zurich Financial Services Group (Zurich) is an insurance-based financial
services provider with a global network of subsidiaries and offices in North
America and Europe as well as in Asia Pacific, Latin America and other markets.
Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs
approximately 55,000 people serving customers in more than 150 countries.
This information is provided by RNS
The company news service from the London Stock Exchange