Zurich Insurance Group has completed its $600 mn cash purchase of American International Group’s personal travel business. This move strengthens Zurich’s position in the global travel insurance market.
Zurich will integrate AIG’s Travel Guard and other related products into its Cover-More Group. The new unit will be headquartered in the United States under Chief Executive Officer David Fike.
Regional operations will be established in Latin America, North America, Asia-Pacific, and the Europe, Middle East, and Africa (EMEA) region.
Earlier this year, AIG announced it would sell its global individual personal travel insurance and assistance business to Zurich for $600 mn in cash, along with additional earn-out consideration. The sale is part of AIG’s strategy to divest non-core assets.
The transaction includes AIG’s Travel Guard business and its servicing operations, except for AIG’s joint venture in India and its operations in Japan. Travel insurance products offered through AIG’s accident and health business are also excluded from the deal.
This acquisition significantly boosts our travel insurance capabilities and expands our global footprint,
Cara Morton, CEO of Zurich Global Ventures
Zurich stated that Cover-More’s subsidiaries, including Travel Guard, Travelex Insurance, Cover-More Travel Insurance, World Travel Protection, Blue Insurance, and Universal Insurance, will continue to operate under their respective brands in local markets.
The acquisition affected Zurich’s Swiss Solvency Test ratio by five percentage points. All necessary regulatory approvals for the deal have been secured.
