RFP News

Published on Oct 27, 2010

ACE Limited has signed a definitive agreement to acquire New York Life’s Hong Kong and Korea life insurance operations for approximately $425 million in cash.

The transaction will expand ACE’s life insurance business into two North Asia markets where the company currently has property and casualty (P&C;) insurance operations and represents approximately $330 million in incremental life insurance revenues, $2.15 billion in assets and over 2,400 captive agents.

Evan G. Greenberg, Chairman and Chief Executive Officer, ACE Limited, commented: “ACE has a good track record for building and managing insurance companies globally and a young but successful record with building de novo life companies in Asia, including China, Vietnam, Thailand and Indonesia. These two life insurance companies are small, solid agency operations that have been managed conservatively by New York Life, a venerable and highly professional company. They provide a good foundation on which to build our life operations in these two territories as part of our overall life insurance strategy in the region.

“This transaction is financially attractive to our shareholders. Within the first full year of ownership, the acquisition will be accretive to both earnings and book value per share and will achieve a return on capital that meets our targets.”

The final purchase price will be based on the adjusted book value of the life companies at the time of closing. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed during the first quarter of 2011. ACE expects to fund the purchase price for the transaction with available cash.***

Source: Business Wire

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