Insurer Phoenix in £3bn merger talks
Talks with Swiss Re unit at early stage
The Swiss Re building, also known as the Gherkin, in London. The structure of the merger between Phoenix Group and Admin Re has not been finalised, but one scenario being discussed involves Phoenix issuing new shares to Swiss Re. Photograph: Simon Dawson/Bloomberg
British specialist life insurer Phoenix Group is in talks about merging with a unit of Swiss Re in a deal that could be worth £3 billion, Sky News reported yesterday.
The talks between Phoenix and Admin Re are at an early stage but a deal would create a business with more than £100 billion under management and close to 10 million policyholders, if it can be reached, said Sky News.
The exact structure of the merger has not been finalised, but one scenario being discussed involves Phoenix issuing new shares to Swiss Re that would mean the Swiss reinsurer becomes a major shareholder in the British company.
Phoenix makes money by buying life insurers that are closed to new customers and running them more efficiently. – (Reuters)