Zurich Insurance Group’s Italian subsidiary has agreed to sell its life and pension back book to Portuguese insurer and wealth management platform GamaLife for an undisclosed sum.
Zurich Investments Life’s arm is composed of both traditional and unit-linked policies.
The Swiss insurer said the transaction is expected to release approximately $1.2bn (£907m, €1bn) of capital, and will complete in the second half of 2022.
The M&A deal will not impact Zurich Investments Life customers or change the company’s contractual obligations towards its policyholders and distributors, the firm added.
Improve capital utilisation
George Quinn, Zurich group chief financial officer, said: “The sale demonstrates our commitment to improve capital utilisation across our life back book.
“The transaction also reduces our exposure to interest rates and credit risks and allows us to focus on the parts of the Italian life and pensions market where we can best serve our customers. We are confident that GamaLife will continue to provide our customers with the same high quality of service that they expect.
“The Italian life insurance and pension market is important for us, and the recent acquisition of Deutsche Bank’s Italian financial adviser network provides a strong platform for further growth in our preferred products.”
Matteo Castelvetri, chief executive of GamaLife Group, added: “Together with Zurich, we believe this transaction represents strong strategic alignment between GamaLife’s focus on sustainable growth and Zurich’s intention to exit legacy business in Italy.
“We look forward to welcoming Zurich’s customers. Our focus will be to ensure a seamless transition for all local stakeholders and to bring our values of innovation, simplicity and service across the enlarged GamaLife group.”
