Swiss insurance conglomerate Zurich is acquiring the global travel insurance business for retail customers from US competitor AIG. The purchase price amounts to $600 million dollars, with the possibility of an additional earn-out payment, according to a statement released on Wednesday.

The acquired business includes the AIG Travel division, encompassing travel insurance and assistance services for retail customers. This division will be integrated into Zurich's subsidiary, Cover-More.

Global Growth Ambitions

«Travel insurance is a high priority for us,» says Cara Morton (pictured below), CEO of Zurich Global Ventures. «This transaction fits strategically well, enhancing Zurich's existing capabilities and positioning us as a leading provider of travel insurance across all regions. The acquisition will expand our base of retail customers.»

(Image: Zurich)

The acquisition will strengthen Cover-More's presence in the USA and provide access to top-tier distribution partners. The annual gross premiums of Zurich's division are expected to increase to approximately USD 2 billion in total volume. The transaction is projected to reduce the Swiss Solvency Test (SST) ratio by approximately 4 percentage points.

No specific details regarding the premium volume of the acquired business from AIG, the number of employees, or customers are disclosed.

The transaction is scheduled to close by the end of 2024.