10 Acquisitions

Bradesco Seguros, S.A.

On 3 July 2017, the Group and Bradesco Seguros, S.A. (Bradesco) entered into a partnership combining the large Commercial Risk business of Bradesco with Swiss Re Corporate Solutions Brasil Seguros S.A. (SRCSB). Upon closing this transaction, SRCSB became one of the leading insurers in the commercial large-risk insurance market in Brazil. The acquisition cost was BRL 210 million paid in cash and 40% shares of SRCSB. The transaction includes Bradesco’s related operations, its team of experts and a business portfolio, including existing, new and renewal business.

This transaction strengthens the Group’s position in the Brazilian commercial insurance market by combining two diversified portfolios and securing a sustainable and large distribution channel.

Qualifying purchased intangible assets have been established. The following table presents details of acquired intangible assets subject to amortisation as of the date of acquisition:


USD millions

Weighted-average amortisation period

Carrying value

Distribution channels

11 years


Customer relationships

6 years


Other intangibles

2 years


In addition, the intangibles not subject to amortisation are licences of USD 29 million and goodwill of USD 38 million. The goodwill relates to the Corporate Solutions Business Unit and is not expected to be deductible for tax purposes.

IHC Risk Solutions, LLC

On 31 March 2016, the Group acquired IHC Risk Solutions, LLC (IHC), a leading US employer stop loss company and the direct employer stop loss business of Independence Holding Company. The cost of the acquisition was USD 153 million. The transaction includes IHC’s operations, its team of experts and business portfolio, including in-force, new and renewal business and is reflected in the Corporate Solutions Business Unit results. This acquisition broadens the Group’s current employer stop loss capabilities in the small- and middle-market self-funded healthcare benefits segment.

Guardian Holdings Europe Limited

On 6 January 2016, the Group acquired 100% of the shares of Guardian Holdings Europe Limited, the holding company for operations trading under the name Guardian Financial Services (“Guardian”) from private equity company Cinven. Guardian provided insurance solutions to financial institutions and insurance companies, either through the acquisition of closed books of business or through entering reinsurance agreements with its customers. The total cost of acquisition as of 6 January 2016 was USD 2.3 billion in cash.

Please refer to Note 10 of the 2016 Annual Report for further details on the Guardian Holdings Europe Limited’s acquisition.