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Swiss Re sells 6.6% stake in Phoenix for £437m

The transaction of the group, which was acquired in the sale of ReAssure in 2020, was done in the context of a regular review and rebalancing of the firm’s investment portfolio

Swiss Re has reduced its shareholding in Phoenix Group Holdings by selling a 6.6% stake for £437m.

The transaction of the group, which was acquired in the sale of ReAssure in 2020, was done in the context of a regular review and rebalancing of the firm’s investment portfolio.

It is also consistent with the company’s overall investment strategy across equity and alternative investments.

In connection with the sale, Phoenix gave its consent to Swiss Re to conduct this transaction prior to the expiry of the lock-up arrangement agreed between the parties on 23 July 2021.

It is currently estimated that the transaction will result in a “low single-digit increase” in the group’s Swiss Solvency Test ratio with the impact of the transaction on its US GAAP earnings not expected to be significant.

In addition, the firm has agreed to a “lock-up arrangement” in respect of its remaining stake of approximately 6.6% in Phoenix of 90 days following the closing as is customary for such a trade.

The sale is expected to close on 25 June 2021.

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