June 11 (Bloomberg) -- Swiss Re Ltd., the world’s second- biggest reinsurer, agreed to buy the U.K. pensions business of HSBC Holdings Plc for an undisclosed sum.

Underlying assets under management forming part of the deal are valued at about 4.2 billion pounds ($7.1 billion) at the end of last year, the companies said in statements today. The transaction, between HSBC Life (UK) Ltd. and Swiss Re’s Admin Re unit, is scheduled to be completed in the second half of 2015.

Admin Re, one of the three business pillars of Zurich-based Swiss Re, buys and manages blocks of closed life and health insurance funds, mainly in the U.S. and the U.K., which no longer sell new contracts. The unit has been looking for joint- venture partners after merger talks with Phoenix Group Holdings failed in November.