Swiss Re Group acquires GE Insurance Solutions.Swiss Re Swiss Re is the world’s largest reinsurer, now that it has acquired GE Insurance Solutions (Ligi 2006). Founded in 1863, Swiss Re now operates in more than 30 countries. General Electric owns 8.9% of the firm. Group said it completed its acquisition of GE Insurance Solutions and would work to integrate the businesses of what is now the world's largest reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. over the next 18 months. Swiss Re paid $7.4 billion overall for GE Insurance Solutions. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Swiss Re, the GE unit's book value rose by $1.7 billion between the November 2005 announcement of the acquisition and its closing in June. Capital contributions from the unit's former parent, General Electric Co., and earnings reimbursements from Swiss Re contributed to the rise in value. Financing for the acquisition included $2.4 billion worth of new Swiss Re shares issued to General Electric. GE now owns 8.9% of Swiss Re's share capital, the reinsurer said. Swiss Re also issued $500 million in mandatory convertible Mandatory Convertible A type of convertible bond that has a required conversion or redemption feature. Either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock. instruments, which in three years will convert to Swiss Re shares, to GE. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion