Post Magazine - New Number One reinsurer in the world � Swiss Re buys GE insurance business

Post Magazine - New Number One reinsurer in the world � Swiss Re buys GE insurance business: "Swiss Re has announced it has agreed to acquire GE Insurance Solutions, the fifth largest reinsurer worldwide, from General Electric Company (GE) in a $6.8bn transaction. The deal means that, as calculated in Reinsurance�s Top 50 tables, Swiss Re has now overtaken Munich Re for the title of the world�s biggest reinsurer in terms of net written premiums.
According to Swiss Re, the acquisition adds a strong franchise to the company, complementing its own strengths. After the closing of the transaction, Swiss Re would have estimated combined revenues of CHF 46bn (based on 2004 figures) and assets of CHF 265bn (as of June 2005) and a highly diversified business globally. Based in Kansas City, MO, USA, GE Insurance Solutions had net premiums earned of $6.2bn in 2004 and total assets of $41.5bn as of June 2005 (excluding GE Insurance Solutions� US life and health business which will not be part of the transaction.
�This is both strategically and financially a very attractive transaction that creates significant value for our shareholders,� said John Coomber, chief executive of Swiss Re. �The acquisition of GE Insurance Solutions provides a powerful business fit offering tremendous opportunities to strengthen our franchise.�
Mr Coomber continued: �Over the past several months, we and our advisors have undertaken a thorough due diligence review of GE Insurance Solutions, including its reserves. This will enable us to incorporate this business in line with our own reserve standards. 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.�
In September 2005 GE announced that it was seeking a bu"