Swiss Re has inked an agreement to acquire 1.1 million life insurance policies from Legal & General Group (L&G) in a cash deal valued at £650m.

The acquired policies, which include with-profit, unit-linked and savings product, will be managed by ReAssure, a UK closed life book consolidator within the Swiss Re Life Capital business.

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Swiss Re said that the deal is consistent with its strategy to acquire closed life books in the UK.

Under the terms of the agreement, the policies will be transferred to ReAssure from Legal & General Assurance Society Limited, which is part of the L&G Group.

Subject to satisfaction of normal conditions for a transaction of this type including court sanction, the formal transfer of the business is expected to be concluded in mid-2019.

ReAssure CEO Matt Cuhls said: “This is an exciting accomplishment that allows us to achieve economies of scale using our proven platform. After the successful integration of Guardian, we are confident in our capability to deliver once again. The UK closed book market is consolidating, and this deal allows us to do what we do best: integration, migration and the delivery of great customer service.”

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Life Capital CEO Thierry Léger CEO said: “We are delighted to have been able to acquire another attractive portfolio in the UK closed book market. This is an excellent fit with our strategy to grow ReAssure in order to create value for shareholders.

“Swiss Re remains committed to diversify its portfolio by accessing life and health risk pools via alternative channels, and ReAssure provides an excellent platform for growth.”

Life Capital operates as one of Swiss Re’s business unit which focuses on developing the firm’s primary Life and Health (L&H) business. Life Capital manages open and closed L&H insurance books.

Upon completion of the deal, ReAssure Group will administer an additional 1.1 million policies, bringing the total number of owned or administered policies to about 4.7 million. Additionally, it will boost ReAssure assets under management including investments for unit-linked and with-profit business by £33bn to approximately £77bn.