Buying closed blocks of life business remains a focus for reinsurers
Monday, 06 01 2015, Category: Insurance and Reinsurance, Country: Europe
Large global reinsurance firms remain focused on buying up closed blocks or books of life and health insurance business, believing that by pooling the underlying assets and managing the legacy claims they can make the books perform better than those who wrote the business.
It’s a business that also attracts a variety of investors and also some third-party capital, as acquiring assets from life portfolios and hoping to be able to outperform the originators can be profitable for asset managers as well as reinsurance firms.
Swiss Re continues to focus on this business, particularly in the UK with its Admin Re unit. While German reinsurance firm Hannover Re is also engaged in these closed book life portfolio buyouts, through its interest in Life Invest Holding AG.