LONDON, Dec 6 (Reuters) - UK asset manager Legal & General Group Plc said on Wednesday it had agreed to sell its mature savings business to Swiss Re for 650 million pounds ($872.2 million).
The owner of Britain’s biggest fund manager said the one million life insurance policies for retail customers were being taken over by Swiss Re’s ReAssure division, a life and pensions business that manages closed and non-core in-force portfolios.
Legal & General said in statement it would use the cash from the sale to invest in other areas of the business.
It expects to complete the deal in mid 2019 and said it is likely to generate a small increase in the company’s Solvency II coverage ratio at outset, increasing to around two percent on completion.
$1 = 0.7453 pounds Reporting by Clara Denina; editing by Jason Neely