Swiss Re, the world's largest reinsurer, has sold its financial services brokerage unit Fox-Pitt, Kelton (FPK) to an investor group led by JC Flowers and by FPK management. Financial terms were not disclosed.
The Zurich-based firm said that it will hold a minority interest and added that 180 employees will join the new company. The transaction, which was announced on 10 February 2006, received regulatory approval and closed on 28 June 2006.
FPK was instrumental in building Swiss Re’s current capital market capabilities, but the broker-dealer activity does not add to Swiss Re’s core focus, said Swiss Re CEO Jacques Aigrain. FPK’s new management is well positioned to grow the newly formed company further.
New areas for Fox-Pitt would include fixed income and private equity, JC Flowers head Christopher Flowers told Reuters.