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Swiss Re Group acquires GE Insurance Solutions.

Swiss Re 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 over the next 18 months.

Swiss Re paid $7.4 billion overall for GE Insurance Solutions. According to 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 instruments, which in three years will convert to Swiss Re shares, to GE.
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Title Annotation:Swiss Reinsurance Company Ltd.
Publication:Best's Review
Article Type:Brief article
Geographic Code:4EUUK
Date:Jul 1, 2006
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