Swiss Re has purchased Barclays Life, the bank's closed book life assurance business, for £753m.
Barclays Life manages approximately £6.8bn in assets for 760,000 policyholders, primarily in unit-linked life and pensions policies.
The bank says it expects to make a £330m profit on the sale, which is not expected to have a material impact on its earnings per share.
Swiss Re has been attempting to expand in the UK in recent years, and lost the battle to carve up Resolution Group's assets after its joint bid for the company with Standard Life was trumped by a near £5bn offer from Pearl Group in January. The reinsurer was also said to be among a pack of insurance giants circling Equitable Life, Britain's oldest mutual insurer, last month.
Barclays Life is the combined life assurance business of Barclays and Woolwich in the UK, which ceased to accept new customer applications in 2001. The firm generated approximately £350m in premium income in the financial year to 30 November 2007.
The bank says it will continue to sell life insurance products from a selection of third party providers.
Barclays group finance director Chris Lucas says Swiss Re is an “experienced and reputable” partner.
“Barclays Life is an attractive, high quality business which is not core to Barclays,” he says.
“We are confident that Swiss Re, with its expertise in this area, will offer policyholders continuity of service and support.”IFAonline
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