The insurer said the business being sold was largely made up of retail customers who hold traditional insurance-based pensions, savings and investment products.
The logo of the world's second biggest reinsurer Swiss Re is seen in front of the company's headquarters in Zurich July 8, 2013.
In line with its strategy to acquire closed life books in the UK, Swiss Re is purchasing 1.1 million life insurance policies from British financial services firm Legal & General Group Plc. By transferring the Mature Savings business to Swiss Re we are confident that this will deliver positive results for the existing Legal & General customers who will benefit from this focus and economies of scale in the specialisms required. Swiss Re will assume economic exposure to the business from 1 January 2018 and formal transfer is expected to happen in mid-2019, subject to regulatory approval. During 2016 the Mature Savings business generated £105m operating profit. At the same time, ReAssure assets under management including investments for unit-linked and with-profit business will increase by £33 billion to approximately £77 billion. L&G last reported a "shareholder" solvency ratio of 186% at 30 June, that excludes the with-profits fund and the final salary pension schemes. The net proceeds of the transaction will be reinvested in the attractive growth opportunities of Legal & General's core businesses.
"Swiss Re remains committed to diversify its portfolio by accessing life and health risk pools via alternative channels, and ReAssure provides an excellent platform for growth".
After the deal ReAssure Group will administer or own about 4.7m policies, and will have grown its total assets under management to about £77bn.
Swiss Re has made a number of significant plays in the United Kingdom life market since 2007, when Zurich transferred £3.7bn of annuities to the firm.
Swiss Re also bought United Kingdom insurer Guardian Financial Services for £1.6bn in 2015.