Zurich Insurance Group (Zurich), a global leader in insurance services, has announced an agreement to acquire AIG’s global personal travel insurance and assistance business (AIG Travel) for $600m.
The deal includes an additional potential earn-out payment and aims to bolster Zurich’s position as a leading travel insurer in the US and worldwide, according to InsurTech Insights.
The acquisition will merge AIG Travel with Zurich’s existing travel insurance provider, Cover-More Group, significantly expanding Zurich’s footprint in the US market.
This strategic move is set to provide Zurich with access to a new global retail customer base, enhancing its market presence and commitment to delivering comprehensive travel insurance solutions.
Zurich Insurance Group, headquartered in Switzerland, is a globally recognised insurance company offering a wide range of insurance products and services in more than 215 countries.
This acquisition will see Zurich integrating AIG Travel into Cover-More Group, enhancing its capabilities and solidifying its status as a leading travel insurer.
Cover-More will benefit from AIG Travel’s global IT platform, which will enhance its global capabilities and enable the extension of its award-winning travel assistance apps to a broader set of partners and customers. Zurich will also acquire AIG Travel’s global service centres as part of the deal.
The acquisition is anticipated to result in combined annual gross written premiums of approximately $2bn for the enlarged Cover-More Group. Additionally, the transaction is expected to cause a reduction of approximately 4ppts in the Swiss Solvency Test (SST) ratio.
This deal is subject to regulatory approval and is expected to close before the end of the year.
Cara Morton, CEO Zurich Global Ventures, said, “Travel insurance is a priority for us. This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions. The acquisition expands our retail customer base and aligns with our ambition to continuously enhance our offerings, while providing world-class protection during every step of our customers’ travels.”
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