Swiss Re has acquired GE Insurance Solutions, the fifth largest reinsurer worldwide, from General Electric Company (GE) in a $6.8bn (£4bn) transaction.

Swiss Re said it will pay for the acquisition with a combination of cash and equity, and will raise $7.5bn (£4.4bn) in new capital.

The combined company will have estimated annual revenue of CHF46bn (£20bn). GE's unit will add approximately $6.2bn (£3.6bn) in revenue.

John Coomber, Swiss Re chief executive officer, said: "This is both strategically and financially a very attractive
transaction that creates significant value for our shareholders.

"The acquisition of GE Insurance Solutions provides a powerful business fit offering tremendous opportunities to strengthen our franchise."