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Swiss Re buys Barclays' life assurance portfolio

Barclays Bank PLC said Tuesday it has agreed to sell its life assurance business to Swiss Re, the world's largest insurer, for around 753 million pounds (US$1.5 billion) in cash.
/ Source: The Associated Press

Barclays Bank PLC said Tuesday it has agreed to sell its life assurance business to Swiss Re, the world's largest insurer, for around 753 million pounds (US$1.5 billion) in cash.

Barclays has around 760,000 life insurance and pension policies and annuity contracts in its Life Assurance Co. Ltd., for which it stopped accepting new applications in 2001, representing 6.8 billion pounds (US$13.3 billion) in invested assets.

Barclays said it expects to make a post-tax gain of around 330 million pounds (US$645.6 million) on the sale.

Excluding the gain on sale, the transaction is not expected to have a material impact on Barclays earnings per share, the bank said. It will continue to sell life insurance products from a selection of third party providers.

Barclays share were up 5.2 percent at 357 pence (US$6.99) in morning trade on the London Stock Exchange.