Swiss Re agrees to sell ReAssure to Phoenix for 3.25 bln stg

ZURICH, Dec 6 (Reuters) - Swiss Re has agreed to sell its UK-based ReAssure unit to Phoenix Group in a cash-and-shares deal worth 3.25 billion pounds ($4.17 billion), the Swiss group said on Friday.

Swiss Re will get a cash payment of 1.2 billion pounds and a stake in Phoenix of 13% to 17%. ReAssure's minority shareholder, MS&AD Insurance Group Holdings Inc, will receive shares in Phoenix representing an 11% to 15% stake.

Swiss Re estimated the transaction would have a positive impact on its Group Swiss Solvency Test (SST) ratio and economic profit and a negative impact on its US GAAP results in the fourth quarter of 2019.

($1 = 0.7794 pounds) (Reporting by Michael Shields, editing by Riham Alkousaa)