Swiss Re agrees GBP 800 million minority investment into ReAssure by MS&AD

• Swiss Re has reached agreement with Japanese insurance group MS&AD Insurance Group Holdings Inc (MS&AD) for an investment into ReAssure, its closed book business, of up to GBP 800 million • The investment strengthens ReAssure's ability to pursue future transactions in line with previous communications • ReAssure remains a core part of Swiss Re's business

ReAssure, a market-leading UK closed life book consolidator within the Swiss Re Life Capital Business Unit, has reached agreement with MS&AD for an investment into ReAssure of up to GBP 800 million.

MS&AD has agreed to acquire a 5% stake in ReAssure1 for GBP 175 million, which values ReAssure at GBP 3.5 billion. MS&AD has committed to invest, for up to a three-year period from closing, GBP 800 million in total into the equity of ReAssure, with a maximum shareholding of 15%. The MS&AD minority investment is consistent with Swiss Re's previously communicated strategy to provide ReAssure with enhanced financial flexibility to support its future growth.

The commitment to invest the additional GBP 625 million will be satisfied through the issuance of primary equity to MS&AD (based on the same valuation formula) as ReAssure undertakes transactions in the future. Once the 15% shareholding threshold is reached, both Swiss Re and MS&AD will subscribe to any further equity injection into ReAssure on a pro rata basis. The acquisition of the initial 5% stake is subject to regulatory approval, and closing is expected to occur in the first quarter of 2018. No further regulatory approvals are expected to be required for the additional MS&AD investments.

Thierry Léger, CEO of Life Capital, said: "I am delighted that we partner with a like-minded, long-term investor that will invest with us side-by-side. The closed book business is a core component of Swiss Re's overall strategy. Swiss Re remains committed to supporting ReAssure with their strong team, great platform and excellent growth prospects."

Matt Cuhls, CEO of ReAssure, said: "This is a positive step and gives us greater capacity for future deals. The UK closed book market is expected to offer significant consolidation opportunities in the near future. Thanks to this commitment from MS&AD and given our proven acquisition and integration capabilities, we are well-positioned to seize these opportunities while delivering attractive returns."

The partnership builds on the cooperation and mutual trust that has existed between MS&AD and Swiss Re for over 100 years on the back of their long-standing business relationship. There will be no impact on ReAssure's strategy and employees due to this transaction.

1 At the level of ReAssure Jersey One Limited.