Disposal of Admin Re^® US

In the second quarter of 2012, the Group entered into an agreement to sell Admin Re^® US to Jackson National Life Insurance Company. In the third quarter 2012, the Group completed the sale following the receipt of all necessary regulatory approvals. Admin Re^® US primarily consisted of bonds, policy loans and policyholder liabilities.

The purchase price was USD 663 million, with an initial cash payment of USD 589 million and the remainder deferred until 2013. Prior to closing a USD 270 million dividend was declared to Swiss Re Ltd. The transaction has resulted in a net loss in the Admin Re^® segment of USD 399 million. The loss has been reflected in the “Net realised investment gains /losses” line in the income statement of the Admin Re^® segment. Certain blocks of businesses have been retained through retrocession or other contractual agreements.

Acquisition of New California Holdings, Inc.

In 2000, the Group and the shareholders of New California Holdings, Inc. entered into a put /call agreement for the acquisition of New California Holdings, Inc., which is the parent company of Aurora National Life Assurance Company. The latter was already fully consolidated by the Group as a variable interest entity (VIE) from 1 January, 2010 due to an update to Topic 810 – Consolidation, because the majority of the mortality, investment and expense risk was passed on to the Group via a modified coinsurance agreement. As the modified coinsurance agreement covered only 95% of Aurora’s business, the Group reported a non-controlling interest from the consolidation of this VIE. Please refer also to Note 19.

On 29 August, 2012, the Group closed on the acquisition of New California Holdings, Inc., which was immediately merged into its subsidiary Aurora National Life Assurance Company. The only significant balance sheet item of New California Holdings, Inc. was its investment in Aurora National Life Assurance Company. Therefore the impact on the Group’s balance sheet and income statement from this acquisition is not material, considering the consolidation of Aurora National Life Assurance Company as a VIE in prior reporting periods.

New California Holdings, Inc. was acquired for USD 548 million in cash. As of the acquisition date, the Group fully owns Aurora National Life Assurance Company and consequently no longer reports any non-controlling interest related to this entity.

Disposal of Swiss Re Private Equity Partners AG

The sale of Swiss Re Private Equity Partners AG, the management company of the Group’s private equity fund-of-fund business, to BlackRock, Inc. was completed on 4 September 2012. As a result of the transaction, the Group recognised a gain of USD 38 million. The sale resulted in a reduction in non-controlling interests of USD 1 400 million related to private equity funds. The Group continues to be invested as a limited partner in the funds and recognises its share in the funds at the reported net asset value, accounting for them under the equity method of accounting.