According to the reinsurer, the sale was done through an accelerated bookbuilding process, in the context of a regular review and rebalancing of Swiss Re's investment portfolio and is consistent with the Group's overall investment strategy across equity and alternative investments.
In connection with the sale, Swiss Re declared that Phoenix gave its consent to Swiss Re to conduct this transaction prior to the expiry on 23 July 2021 of the lock-up arrangement agreed between the parties.
Swiss Re estimates that the transaction will result in a low single-digit increase in the Group's Swiss Solvency Test ratio. The impact of the transaction on Swiss Re's US GAAP earnings is not expected to be significant.
Swiss Re has agreed to a lock-up arrangement in respect of its remaining stake of about 6.6% in Phoenix of 90 days following closing, subject to waiver, as is customary for such a trade. The remaining stake will continue to be marked to market in US GAAP earnings.
The sale is expected to close on 25 June 2021.