ReAssure operating profit climbs 57% ahead of Phoenix merger
Life insurer ReAssure has posted strong 2019 results as it prepares to be merged into rival Phoenix Group by the middle of the year.
Phoenix confirmed the £3.2bn acquisition - which was first announced in early December - in its own results figures published earlier this month.
In year-end results released today (19 March), ReAssure posted a 57% jump between December 2018 and December 2019 in overall operating profit to reach £406m.
A strong 12 months for the life insurer saw it complete the acquisition of Quilter's heritage life and pensions business after it was sold off from its parent company for £425m last August.
ReAssure - still currently owned by Swiss Re - said the integration of the Quilter business was expected to achieve around £200m in synergies, largely cost efficiencies and capital benefits.
Meanwhile the transfer of the Legal & General's mature savings book is expected to transfer to ReAssure in the first half of this year following what it noted was "a cautious approach to the approval process".
The deal will complete right before the expected integration with Phoenix and is expected to have an eight percentage point impact on ReAssure's Solvency II ratio.
ReAssure chief executive Mark Hodges said: "Our 2019 year-end capital position has grown as expected despite the turbulent market conditions and our in-force book has delivered resilient, predictable surplus generation.
"In 2020, we are focusing on continuing to deliver a strong performance. This will best position a combined ReAssure and Phoenix business to add value to shareholders and customers alike."
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