Zurich Insurance Group (Zurich) today announced an agreement to acquire AIG’s global personal travel insurance and assistance business (AIG Travel) for USD 600 million, plus a potential additional earn-out payment. The business will be combined with Zurich’s travel insurance provider Cover-More Group (Cover-More) and will expand its footprint in the U.S. The acquisition gives Zurich access to a new global retail customer base and makes it a leading travel insurer globally.
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.
Cara Morton, CEO Zurich Global Ventures
As part of the acquisition, Zurich will add AIG Travel’s well-established Travel Guard brand to its Cover-More global multi-brand model to expand Cover-More’s presence in the U.S. It will also provide access to high-quality distribution partners.
Cover-More will strengthen its global capability through AIG Travel’s global IT platform, providing an opportunity for Cover-More to extend its award-winning travel assistance apps to an expanded set of partners and customers. Zurich will also acquire AIG Travel’s global service centers as part of the deal.
The acquisition is expected to result in combined annual gross written premiums of approximately USD 2 billion1 for the enlarged Cover-More Group. The transaction is expected to result in a reduction of approximately 4ppts in the Swiss Solvency Test (SST) ratio2.
The acquisition is subject to regulatory approval and expected to close before the end of the year.
1 Combined gross written premiums before adjustment for deposit accounting.
2 The Swiss Solvency Test (SST) ratio is calculated based on the Group’s internal model, which is subject to the review and approval of the Swiss Financial Market Supervisory Authority FINMA. Estimated impact from transaction was based on the SST ratio as of December 31, 2023.
.jpg){kind=tracking}