Swiss Re 2006 embedded value up to 22.6 bln Sfr

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ZURICH, April 3 (Reuters) - Swiss Re (RUKN.VX) said on Tuesday the value of its life and health reinsurance portfolio rose by 13 percent in 2006, boosted by the acquisition of the reinsurance units of General Electric (GE.N).

Swiss Re's embedded value -- an industry gauge for the value of a life insurance portfolio -- rose to 22.6 billion Swiss francs ($18.62 billion), while the new business value at the world's largest reinsurer also rose.

"The acquisition of GE Insurance Solutions, which closed in June 2006, contributed strongly to the increase in embedded value and close to 100 percent of the business was retained," the company said in a statement.

Swiss Re said in 2005 it would buy the units from the U.S. industrial and financial conglomerate for $7.4 billion, boosting its global presence in a bid to outpace rivals, as reinsurance markets stall.

New business value was 664 million francs, Swiss Re said, boosted by its acquisition of the life business of General Electric in the UK for 465 million pounds last year, its second acquisition from the US group.

The company specialises in buying life insurance portfolios that have others have stopped adding new clients to, making money from continuing premium income and aiming to boost profitability through economies of scale.

Embedded value is a life insurer's estimate of the worth of its business, measuring future profits on policies it has already sold, as well as the value of free assets it does not need for solvency or to meet policyholder payouts.

Shares in the company, which takes risks on its books that are too large or too volatile for other insurers, have risen more than 10 percent so far this year, outpacing the Dow Jones Stoxx insurance index .SXIP, which has traded flat.

((Reporting by Douwe Miedema, editing by Leslie Gevirtz; Reuters Messaging: rm://douwe.miedema.reuters.com@reuters.net; Email: zurich.newsroom@news.reuters.com; 41 1 631 7340))

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