Disposal

RNS Number : 6258A

Barclays PLC

05 August 2008

 



5 August 2008

BARCLAYS PLC

Barclays announces sale of Barclays Life to Swiss Re

Barclays Bank PLC ('Barclays') has agreed to sell Barclays Life Assurance Company Limited ('Barclays Life') to Swiss Reinsurance Company ('Swiss Re'), for a consideration of approximately £753 million payable in cash. The sale is expected to be completed by 31 October 2008, after receipt of appropriate regulatory approvals.

Barclays Life is the combined life assurance business of Barclays and Woolwich in the UK, which ceased to accept new customer applications in 2001. As at 31May 2008, Barclays Life managed approximately £6.8 billion of assets in respect of c.760,000 policies which will transfer with the sale. The portfolio primarily comprises unit-linked life and pensions policies.

Barclays Life generated approximately £350 million in premium income in the financial year to 30 November 2007.  The post-tax gain on sale for Barclays is expected to be approximately £330 million.  Excluding the gain on sale, the transaction is not expected to have a material impact on Barclays earnings per share.  Barclays will continue to sell life insurance products from a selection of third party providers.

Chris Lucas, Group Finance Director, Barclays, said: 'Barclays Life is an attractive, high quality business which is not core to Barclays.  We are delighted to agree a sale to Swiss Re which is an experienced and reputable partner.  We are confident that Swiss Re, with its expertise in this area, will offer policyholders continuity of service and support.'

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For further information please contact:

Barclays

Investor Relations                                       Media Relations    

Mark Merson                                               Alistair Smith

[phone]                                    [phone]

John McIvor                                                Robin Tozer

[phone]                                    [phone]

Swiss Re

Investor Relations                                       Media Relations    

[phone]                                            [phone]

[e-mail]              [e-mail]

About Barclays

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the United States, Africa and Asia.  With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 147,000 people.  Barclays moves, lends, invests and protects money for over 38 million customers and clients worldwide.  For further information about Barclays, please visit our website www.barclays.com.

About Swiss Reinsurance Company Ltd

Swiss Re is a leading and highly diversified global reinsurer. The company operates through offices in more than 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company's traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated 'AA-' by Standard & Poor's, 'Aa2' by Moody's and 'A+' by A.M. Best.

Forward Looking Statements

This announcement contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition and performance. 

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, market related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation and the impact of competition- a number of which factors are beyond the Group's control. As a result, the Group's actual future results may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Any forward-looking statements made by or on behalf of Barclays speak only as of the date they are made. Barclays does not undertake to update forward-looking statements to reflect any changes in Barclays expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has filed or may file with the SEC.

 

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