Zurich to transfer runoff business of Zurich Specialties London Ltd. to Swiss Re

Zurich Financial Services Group (Zurich) has announced one of its non-core subsidiaries in the United Kingdom, Zurich Specialties London Ltd, will transfer its run off insurance business to Swiss Re at book value.
“This transaction forms an integral part of Zurich’s announced strategy to divest most of its non-core businesses to release and redeploy $1.5 billion of capital and focus on enhancing its propositions in its chosen target markets,” Zurich said in a statement.
“It is expected that the transaction will allow repatriation over time of regulatory capital from Zurich Specialties London Ltd to its parent of approximately $360 million.”
Zurich Specialties London Ltd has not underwritten new policies since 2005. Zurich and Swiss Re have signed a reinsurance agreement that transfers the benefits and risks of this portfolio as of Apr. 1, 2011 from Zurich to Swiss Re until the transfer is completed.
Zurich will transfer approximately $950 million in gross assets and liabilities to Swiss Re.
The completion of this transaction is subject to certain conditions including regulatory review and court approval.