SoftBank investment not to exceed 10% of Swiss Re's share capital

4 April 2018 — Vlad BOLDIJAR
Swiss Re confirmed negotiations are still ongoing in respect of a minority investment by SoftBank its share capital, currently expected not to exceed 10% - a much smaller value than the 20% - 30% investment previously announced by media.

"In parallel, the two parties are exploring areas of potential strategic cooperation", the reinsurers' representatives pointed out in a press release.

Swiss Re reiterates that its capital position remains very strong and the issuance of new capital is not under consideration. "Swiss Re would like to emphasise that these discussions remain at an early stage, and there is no certainty that any minority investment or strategic partnership will be agreed, or as to any terms, timing, or form of any such investment or partnership".

In February 2018, Swiss Re announced it had entered into preliminary discussions with SoftBank regarding a potential partnership and minority investment. At that time, financial media wrote that the deal would involve an investment of worth USD 10 billion or more and would mark "Japanese company's biggest move yet into financial services", according Reuters. The figures represents about one third of the Swiss reinsurer, as reported by the Wall Street Journal.

Over time, SoftBank has made other investments the insurance industry, and has stakes in Chinese online insurer ZhongAn, health insurance claim processing service Ping An HealthKonnect set up by Ping An Insurance Group, and US insurance startup Lemonade.

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