Swiss Re agreed to buy GE's Insurance Solutions for up to $7.6 billion.
Swiss Re said today that it needed to raise $7.5 billion in new capital to finance the deal, which will catapult Swiss Re closer to rival Munich Re, the world's largest reinsurer, in terms of annual revenues.
Swiss Re said the acquisition of what it called the world's fifth-largest insurer would begin to amplify Swiss Re earnings one year after the deal has closed.
"Swiss Re expects the transaction to be accretive to earnings per share and return on equity, beginning in 2007, the first full year after closing," outgoing Chief Executive Officer John Coomber said.
Swiss Re said the deal would cost $6.8 billion, a figure that rises to $7.6 billion including closing adjustments, pricing the deal at roughly one time book value.