HSBC Life (U.K.) agreed to sell its U.K. pension business to Admin Re, a subsidiary of Swiss Re.
Terms of the deal, which is expected to close in the second half of 2015, were not disclosed.
HSBC will sell its corporate and individual pension policies and an associated annuities business through an insurance business transfer scheme, according to a news release from the HSBC.
The deal involves about £4.2 billion ($7.1 billion) of underlying assets, of which about £4 billion is managed by HSBC Global Asset Management (U.K.). HSBC GAM will continue as the investment manager of the underlying assets under a new contractual arrangement. According to a news release from Swiss Re, the firm will acquire more than 400,000 individual and group pension and related annuity policies.
“This transaction is an attractive opportunity for Admin Re and confirms our commitment to execute on the strategy to grow the Admin Re business in the U.K.,” said John R. Dacey, chairman of Admin Re and member of the Swiss Re executive committee, in Swiss Re's news release.