Last checked at 2 Jan 2020 07:00
ReAssure Group plc
ReAssure announces the completion of the Quilter UK Heritage book acquisition
Further to our announcement on 5 August 2019, ReAssure Group plc ("ReAssure") today confirms the completion of the acquisition of Quilter plc's Heritage life and pensions division, Old Mutual Wealth Life Assurance Limited.
The transaction is expected to generate over £500 million of surplus generation including c.£200 million of synergies. Internally funded, it significantly exceeds internal return requirements with a price to adjusted Unrestricted Tier 1 of c.80%(1) and a payback period of 4 years.
Mark Hodges, Chief Executive Officer of ReAssure, commented:
'I am delighted to welcome our new customers and colleagues to ReAssure. This transaction is further evidence of our value-creating acquisition track record providing excellent customer service, valued solutions for vendors and attractive returns to our shareholders.'
Footnotes:
(1) Adjustments include revised expense assumptions and transitional measures on technical provisions
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Notes to editors:
1) ReAssure Group plc: ReAssure is a leading closed book life insurance consolidator in the UK. The group focuses exclusively on the acquisition and management of closed book life insurance policies, with a mission to secure and improve customer outcomes for its policyholders.
2) Swiss Re agreement to sell ReAssure Group: On 6 December 2019, Swiss Re announced an agreement to sell its subsidiary ReAssure Group plc to Phoenix Group Holdings plc, subject to receipt of regulatory and anti-trust approval. For more information, please visit www.reassuregroupplc.co.uk.
Forward looking statements
This announcement may contain certain forward-looking statements, including as to plans, goals, trends and expectations relating to future financial condition, performance and results, which describe ReAssure's current expectations of future events based on certain assumptions, and include any statement that does not directly relate to a historical fact or current fact. By their nature, forward-looking statements involve uncertainty and unknown risks because they relate to future events and circumstances which are beyond ReAssure's control, including, among others, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisitions or combinations within relevant industries. As a result, the group's actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place undue reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and ReAssure does not undertake to update or revise forward-looking statements contained in this announcement or any other forward-looking statement it may make.
Further information
ReAssure Group plc
Laura Doyle, Head of Investor Relations +44 (0) 20 7039 9199
Investor.Relations@reassure.co.uk
Brunswick Group
Charles Pretzlik and Eilís Murphy +44 (0) 20 7404 5959