Swiss Re sells US subsidiary Conning
Reinsurer Swiss Re sells the financial services company for an undisclosed amount after suffering losses.Zurich -- Reinsurer Swiss Re sold US asset managers Conning & Company to New York private equity firm Acquiline Capital Partners, a spokesman for the Swiss group said on Wednesday.
The transaction involved the whole of the group's holding in Conning, which specialises in financial services for the insurance market, a Swiss Re spokesman told AFP.
The value of the deal was not disclosed.
Swiss Re bought Conning, which manages some USD 70 billion (EUR 50.4 billion) of assets, in 2001, shortly after it decided to expand its financial services business.
The world's second-biggest reinsurer later suffered in the financial crisis and only returned to profitability earlier in 2009 after falling to its biggest annual loss in 2008.
Analysts at Vontobel Bank said Conning "never made a significant contribution to Swiss Re's earnings."
Aquiline said its investment would allow Conning to improve its business.
"Swiss Re will maintain a strong relationship with Conning as a recipient of its services," the US firm said in a statement.
AFP / Expatica