Jackson National Life Insurance Company has entered into an agreement to purchase SRLC America Holding Corp. (SRLC) from Swiss Re. Jackson will pay $621 million in cash for the business, subject to adjustment by application of customary purchase price mechanics to reflect the value of the business at closing.
The purchase will be financed in its entirety from internal Jackson resources. Swiss Re will retain a portion of the SRLC business through reinsurance arrangements to be undertaken prior to closing. The transaction is subject to regulatory approval and is expected to close in the third quarter of 2012.
SRLC is a life insurance business that sits within the US division of Swiss Re’s Admin Re. The primary operating subsidiary of SRLC is Reassure America Life Insurance Company. The earnings of SRLC are derived from seasoned, long-duration cash flows generated principally from term life, whole life and basic universal life products. Jackson will acquire assets related to the subject business of approximately $10 billion and approximately 1.5 million policies.