Global financial giant Zurich is expanding its position as a leading travel insurer by acquiring AIG's global travel insurance business for private clients.
Zurich Insurance Group (Zurich) is enhancing its position in global travel insurance. On Tuesday, the firm announced the acquisition of AIG's global travel insurance and assistance business for private clients, including «Travel Guard». The purchase price is $600 million, with the potential for an additional earn-out payment.
With the acquisition once completed, Zurich will become a leading global travel insurer, serving over 20 million customers and collaborating with 200 distribution partners worldwide, according to the announcement.
Expansion Builds on Prior Acquisition of Cover-More Group
In April 2017, Zurich already acquired Cover-More Group, a leading provider of travel insurance and assistance solutions headquartered in Sydney. Cover-More holds a dominant market position in Australia, India, and the US.
Headquarters of «Zurich Cover-More» in the US
The newly acquired AIG private client travel insurance and assistance business will be merged with Cover-More. Operating under «Zurich Cover-More», the combined entity will be headquartered in the US. David Fike, who was appointed CEO of Cover-More in July, will lead the new company.
«This acquisition enhances our existing travel insurance capabilities and expands our global presence,» Cara Morton, CEO of Zurich Global Ventures, said. She added that Zurich aims to provide services and protection going beyond traditional travel insurance and assistance.
Financial and Regulatory Impacts
The transaction has reduced Zurich's Swiss Solvency Test (SST) ratio by five percentage points. All necessary regulatory approvals have been obtained.
