Zurich Insurance Group (Zurich) has acquired AIG’s global personal travel insurance and assistance business, including Travel Guard, for $600m, plus a potential earn-out payment.
The deal makes Zurich one of the largest travel insurers globally.
Cara Morton, CEO Zurich Global Ventures said: “This acquisition significantly boosts our travel insurance capabilities and amplifies our global footprint. By welcoming Travel Guard into Zurich Cover-More, we aim to deliver unmatched services and protection to our customers worldwide that go beyond traditional travel insurance and assistance.”
Travel Guard is combined with Zurich’s travel insurance provider, Cover-More Group, under the new corporate brand Zurich Cover-More.
Zurich Cover-More’s subsidiaries, including Travel Guard, Travelex Insurance, Cover More Travel Insurance, World Travel Protection, Blue Insurance, and Universal Assistance, will continue to operate under their brands in their local markets.
Zurich Cover-More will establish its new headquarters in the US under the leadership of chief executive officer David Fike and have regional units in Latin America, North America, Asia Pacific, as well as Europe, Middle East and Africa (EMEA).
This acquisition expands Zurich’s footprint in a global market worth about $20bn in gross written premiums and significantly strengthens its presence in the US market. Zurich now serves more than 20 million customers annually and maintains long-term relationships with more than 200 distribution partners.
The transaction has impacted Zurich’s Swiss Solvency Test (SST) ratio by 5 percentage points. All necessary regulatory approvals have been obtained.
