UK - Zurich Assurance has transferred £3.7bn in assets and approximately £3.9bn in liabilities to Swiss Re to focus on its core business of pensions, investments and protection.
The UK subsidiary of Zurich Financial Services Group signed an agreement to transfer part of its UK annuity business which will be managed by Windsor Life Assurance Company Limited, which is a Swiss Re subsidiary.
The agreement will transfer the portfolio of annuities ‘in payment’ as of 1 January 2007 and will cover approximately 220,000 policies.
To understand the development in context, Zurich has not actively marketed its annuity business in the UK since 2005.
Zurich Global Life CEO, Paul van de Geijn, said: “Zurich reviews and adapts its product offerings constantly to serve its customers better and to remain competitive. This allows us to focus our resources on our core business where we are pursuing sustained profitable growth.”
Zurich UK life pensions management director Dave Lowe added: “In our core markets our aim is to create more customer value. For group defined contribution (DC) pensions this means ensuring that we deliver a quality investment proposition service that builds long-term relationships and provides support, to employers and trustees, to manage corporate change and control risk.
“We've invested significantly in the last year to further enhance our corporate pensions proposition, adding new servicing facilities and extending our suite of member education tools. We plan to continue with this level of investment so that we are able to attract more blue-chip companies to work with us to provide their employees with high quality DC solutions.”
The completion of the transaction is subject to regulatory and court approvals.
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