Zurich announced early Wednesday that it is acquiring the global personal travel insurance business of American International Group (AIG) for $600 million. An additional payment may be made if specific targets are met after the sale, which is anticipated to close by the end of 2024.
Zurich emphasized that travel insurance is a “priority” and stated that AIG’s Travel Guard business will strengthen its U.S. presence through Zurich’s travel insurance provider, Cover-More Group, positioning it as a leading travel insurance provider.
“This transaction is a great strategic fit, enhancing Zurich’s existing capabilities and establishing us as a leading travel insurance provider across all regions,” said Cara Morton, CEO of Zurich Global Ventures. “The acquisition broadens our retail customer base and aligns with our goal to continuously enhance our offerings, providing world-class protection throughout our customers’ travels.”
Cover-More’s capabilities will be bolstered by AIG’s global IT platform, and the deal includes AIG’s global service centers. However, the transaction excludes travel coverages offered through AIG’s Accident & Health (A&H) business.
AIG CEO Peter Zaffino described the sale as “another important strategic step in positioning AIG for the future.” He assured that AIG will work closely with Zurich to ensure a seamless transition for employees, customers, and global distribution partners.
Zurich expects this acquisition to generate annual gross written premiums of about $2 billion for the new Cover-More Group. Bank of America analysts noted that Zurich appears to have made a “sensible acquisition” that could increase earnings per share by 1-2% post-integration.
source: insurancejournal.com
