For four months Swiss Re and SoftBank discussed the potential for the Japanese conglomerate to take a minority stake in the world’s Number one reinsurer. Today Swiss Re announced the end of the talks without a deal.
Ledger Insights explored the potential benefits in-depth.
Market rumors suggested that SoftBank wanted as much as 25% of the company to yield significant influence. Swiss Re was only interested in around 10%, and the reinsurer wasn’t looking to raise new capital.
From Swiss Re’s point of view, the talks may have forged a closer relationship with tech investor, which could be beneficial.
The Swiss company said in a statement: “Swiss Re will continue to implement its technology strategy with a combination of in-house developments and third-party collaborations. In this context, the company will also further explore business ideas between Swiss Re’s operative entities and the portfolio companies of SoftBank.”
There’s a possibility that SoftBank might enter talks with Munich Re. Except that SoftBank strategically only likes to invest in the industry leader. That said, Munich Re is a somewhat close second in both gross premiums and market capitalization.
Though Munich Re’s share price implies the market thinks a SoftBank investment is unlikely.