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Barclays to sell life unit in £753m deal
05.08.08
Barclays is selling its £6.8 billion life assurance business to Swiss Re in yet another sign that UK banks are still keen to raise cash to prop up balance sheets decimated by the credit crunch.
The business, which was formed from Barclays and Woolwich life funds, closed for new business in 2001 and will cost Swiss Re £753 million cash. Barclays finance director Chris Lucas said it was “an attractive, high quality business which is not core.”
The cash will add to the £4.5 billion Barclays raised last month through a share placing.
Barclays is expected to reveal a 33% fall in its first-half profits on Thursday.
