Swiss Reinsurance Company has agreed to pay $6.8 billion in cash and stock for the U.S. property-casualty reinsurance operations of General Electric Company.[@@]
Swiss Re, Zurich, will be getting most of GE Insurance Solutions, Kansas City, Mo., a unit of General Electric, Fairfield, Conn., that generated about $6.2 billion in net earned premiums in 2004.
GE Insurance is the parent of Employers Reinsurance Corp.
Scottish Re Group Ltd., Hamilton, Bermuda, paid $151 million for much of General Electric’s life reinsurance business in December 2003, and the Swiss Re deal does not include any significant U.S. life and annuity reinsurance operations, according to GE Insurance spokesman Dean Davison.
The deal does include the GE Insurance health maintenance organization stop-loss line, Davison says.
General Electric is keeping the GE Insurance U.S. life and health reinsurance operations, including Union Fidelity Life and Employers Reassurance Corp. The company also is keeping GE Life (UK), General Electric says.
The U.S. life and health reinsurance business “is being downsized,” General Electric says.
General Electric Chairman Jeff Immelt says his company is making the deal to redeploy capital to faster-growth and higher-return businesses.
General Electric has completed or announced 5 insurance divestitures with a total value of $25 billion since 2002, Immelt says.