Zurich Insurance buys AIG travel business in US$600mn deal

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AIG to sell its global personal travel insurance and assistance business, including travel guard to Zurich Insurance as part of $600mn deal

Zurich Insurance has announced a US$600 million agreement to acquire AIG's global personal travel insurance and assistance business, with an additional potential earn-out payment.

The acquisition, anticipated to close before the end of 2024, is expected to result in combined annual gross written premiums of approximately US$2bn for the Group.

As part of the deal, Zurich will integrate AIG Travel’s 'Travel Guard' brand into its Cover-More global multi-brand model, enhancing its presence in the US The acquisition will also provide access to high-quality distribution partners.

Cover-More will enhance its global capabilities by leveraging AIG Travel's advanced IT platform, enabling it to extend its award-winning travel assistance apps to a broader range of partners and customers. Additionally, Zurich will acquire AIG Travel's global service centers as part of the agreement.

"This 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 customer's travels," said Cara Morton, CEO of Zurich Global Ventures. "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," she added.

The acquisition is also expected to reduce the Swiss Solvency Test (SST) ratio by approximately 4 percentage points.

Zurich Insurance 

Zurich Insurance Group has experienced significant developments in recent years, marking a period of substantial growth and strategic initiatives. In 2023, under the leadership of CEO Mario Greco, Zurich achieved a record business operating profit of USD 7.4 billion, bolstered by strong performances in both the Commercial Insurance and Life businesses. This success led to an ambitious set of financial targets for the 2023-2025 period, including a business operating profit after tax return on equity (BOPAT ROE) target of over 20% by 2025​.

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