General Electric has completed the sale of its insurance solutions business, including Employers Reinsurance Corporation, to Zurich, Switzerland-based reinsurance giant Swiss Re.
Swiss Re bought the insurance units for $7.8 billion in cash and securities plus the assumption of $1.7 billion in General Electric (GE) Insurance Solutions Corporation debt. GE received $5.4 billion in cash and 33.3 million shares of Swiss Re common stock. As a result of the transaction, GE will own a 9% percent stake in Swiss Re.
GE Insurance Solutions offers a wide variety of reinsurance and commercial insurance products and services to insurance companies, corporations and professionals. The company operated with 2,500 employees in 50 offices in 22 countries.
The operating companies among those included in the transaction are: Employers Reinsurance Corporation, GE Frankona Reinsurance Limited (UK), GE Frankona Ruckversicherungs-Aktiengesellschaft, GE Reinsurance Corporation, Westport Insurance Corporation and First Specialty Insurance Corporation.