Jackson® Acquires SRLC America Holding Corp. from Swiss Re

LANSING, Mich.--(BUSINESS WIRE)-- Jackson National Life Insurance Company^® (Jackson) today announced that it has entered into an agreement to purchase SRLC America Holding Corp. (SRLC) from Swiss Re. Jackson will pay $621 million in cash for the business, subject to adjustment by application of customary purchase price mechanics to reflect the value of the business at closing. The purchase will be financed in its entirety from internal Jackson resources. Swiss Re will retain a portion of the SRLC business through reinsurance arrangements to be undertaken prior to closing. The transaction is subject to regulatory approval and is expected to close in the third quarter of 2012.

SRLC is a life insurance business that sits within the US division of Swiss Re’s Admin Re^®. The primary operating subsidiary of SRLC is Reassure America Life Insurance Company (REALIC), which, since 1995, has completed a significant number of stock acquisitions and reinsurance arrangements through which it has acquired a diverse portfolio of traditional US life insurance business. The earnings of SRLC are derived from seasoned, long-duration cash flows generated principally from term life, whole life and basic universal life products. Jackson will acquire assets related to the subject business of approximately $10 billion and approximately 1.5 million policies.

Jackson, an indirect wholly owned subsidiary of the United Kingdom’s Prudential plc (NYSE: PUK), expects the transaction to be immediately accretive to the company’s IFRS¹ pre-tax earnings while having a modest impact on its statutory capital position. The acquisition will diversify Jackson’s earnings base by increasing the percentage of income derived from underwriting activities relative to the company’s current spread- and fee-based businesses.

Skadden, Arps, Slate, Meagher & Flom, LLP provided legal advice to Jackson in connection with this transaction.

Commenting on the acquisition, Mike Wells, President and Chief Executive Officer, Jackson, said:

“This bolt-on acquisition is in-line with our strategy and is a great opportunity to increase the scale of our life business. It is a capital efficient transaction that will produce an attractive IRR (internal rate of return) and payback period commensurate with what we achieve organically on writing new business. The transaction helps diversify Jackson’s earnings by increasing the amount of income we generate from underwriting activities thereby enhancing the quality of our earnings and our ability to remit more cash to our parent, Prudential plc.”

¹International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. Jackson’s parent, Prudential plc, uses IFRS to report the Group's financial results.

About Jackson National Life Insurance Company

With $120 billion in assets (IFRS)*, Jackson National Life Insurance Company (Jackson) is a leading provider of retirement solutions. The company sells variable, fixed and fixed index annuities, life insurance and institutional products. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, wirehouses, financial institutions and independent insurance agents. Jackson’s subsidiary, Jackson National Life Insurance Company of New York^®, markets similar products in the state of New York. For more information, visit www.jackson.com.

*Jackson has $120 billion in total IFRS assets and $109 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of December 31, 2011).

Annuities and life insurance products are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC. May not be available in all states and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and had $545 billion in assets under management as of December 31, 2011. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements contained in this press release include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts, and include those relating to the anticipated future performance of REALIC, anticipated integration benefits arising from the acquisition of SRLC and the satisfaction and timing of closing conditions relating to the transaction. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished.

Admin Re^® is a registered trademark of Swiss Re.

Jackson National Life Insurance CompanyMatt Gonring, 800-565-9044 x35521
[email protected]

Source: Jackson National Life Insurance Company