The acquisition of GE Insurance Solutions (GEIS) by Swiss Re is well on course to make $300m in savings, according to CEO Jacques Aigrain.
The acquisition was completed in June and bumped Swiss Re to the top of the list of largest reinsurers. However, contrary to expectations, the combining of the portfolios of the two companies has not seen the overlaps expected by many, Aigrain.
“We have been pleasantly surprised by the almost complete lack of overlaps between the GEIS and Swiss Re portfolios,” commented Aigrain. “The life and health business saw some client overlaps but the business lines are almost completely independent. Swiss Re can now definitely say it has the most diversified portfolio of any reinsurer in the industry.”
Michel Lies, head of client markets, also speaking at the Rendez-Vous in Monte Carlo, commented on the fact that Solvency II will further increase results volatility on top of an already uncertain market due to NatCat loss trends.
The regulation will also increase the need for capital for companies that are not adequately diversified.
Aigrain declined to comment on recent press speculation of a possible buy-out of Prudential's closed life fund business although did admit the group was still looking to diversify.
He also refused to comment on the possibility of job cuts as a result of the integration with GEIS, although did concede that the acquisition was going well.
