Swiss Re has announced plans to optimize its legal entity structure in the European Union by forming three legal entities, based in Luxembourg, which will serve as risk carriers for most of its European reinsurance and insurance business.

<p>Swiss Re made the decision to alter its legal structure in light of the upcoming implementation of the European Reinsurance Directive. The new structure will result in more efficient capital management, administration and reporting, the insurer hopes.<br /><br />The three legal entities created by the company will be based in Luxembourg but will operate via branches in the rest of the EU. <br /><br />Swiss Re aims to have the new structure in place by mid-2009, starting with the conversion of the first locations by January 1, 2008. The company has stressed that its business structure and market approach will remain unchanged, meaning the envisaged legal structure change should have no significant impact upon its clients.</p>