Zurich Insurance: signs $600m deal with AIG Travel

(CercleFinance.com) - Zurich Insurance has announced an agreement to acquire AIG's global personal travel insurance and assistance business (AIG Travel) for $600m, plus a potential earn-out.


The business will be merged with Zurich's travel insurance provider, Cover-More Group (Cover-More), and will expand its presence in the United States. The acquisition gives Zurich access to a new global retail customer base and establishes Zurich as a leading global travel insurer.

As part of the acquisition, Zurich will add AIG Travel's well-established Travel Guard brand to its global multi-brand Cover-More model to expand Cover-More's presence in the US.

Cover-More will strengthen its global capabilities with AIG Travel's global IT platform, giving Cover-More the opportunity to extend its award-winning travel assistance applications to an expanded set of partners and customers. Zurich will also acquire AIG Travel's global service centers as part of the agreement.

The acquisition is expected to result in combined annual gross written premiums of approximately $2bn. The transaction is expected to result in a reduction of approximately 4% in the Swiss Solvency Test (SST) ratio.

Travel insurance is a priority for us. This transaction is an excellent strategic fit, strengthening Zurich's existing capabilities and making us a leading travel insurance provider in all regions. The acquisition expands our retail customer base and aligns with our ambition to continually improve our offerings, while providing world-class protection at every stage of our customers' travels, Zurich Global Ventures said.


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