Zurich Insurance Group (Zurich) announced an agreement to buy AIG’s global personal travel insurance and assistance business, AIG Travel, for $600 mn. An additional earn-out payment is possible.
This acquisition will merge AIG Travel with Zurich’s travel insurance provider, Cover-More Group, expanding Zurich’s presence in the U.S. and making it a leading global travel insurer.
The deal includes AIG Travel’s Travel Guard brand, which Zurich will integrate into Cover-More’s multi-brand model. This addition enhances Cover-More’s U.S. presence and provides access to new insurance distribution partners.
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.
Cara Morton, CEO Zurich Global Ventures
The acquisition expands retail customer base and aligns with Zurich’s ambition to continuously enhance offerings, while providing insurance protection during every step of customers’ travels.
Cover-More will benefit from AIG Travel’s global IT platform, enabling it to offer its award-winning travel assistance apps to more partners and customers. The acquisition also includes AIG Travel’s global service centers.
The combined entity is expected to generate annual gross written premiums of approximately USD 2 billion. The transaction may reduce Zurich’s Swiss Solvency Test (SST) ratio by about 4 percentage points.
The acquisition requires regulatory approval and is expected to close by the end of the year.
The acquisition of AIG Travel by Zurich Insurance Group highlights its strategic importance in the travel insurance market. By integrating AIG Travel’s capabilities, Zurich aims to enhance its.
AIG Travel, a division of American International Group, specializes in providing travel insurance services globally. It is known for its travel protection plans, which cover a wide range of needs, including trip cancellation, medical emergencies, travel delays, and lost luggage.
AIG Travel operates under the well-established Travel Guard brand, which is recognized for its reliability and extensive coverage options.
