Zurich, a Swiss insurance company, announced on Wednesday that it will acquire the global personal travel insurance business of American International Group (AIG) for $600 million. The deal is set to close by the end of 2024, with the possibility of additional payments if certain targets are met after the sale.
Travel insurance is a top priority for Zurich, and acquiring AIG’s Travel Guard business will help expand its U.S. footprint as part of Zurich’s travel insurance provider, Cover-More Group. This acquisition positions Zurich as a leader in the travel insurance industry across all regions.
Cara Morton, CEO of Global Ventures at Zurich, stated that the acquisition aligns with their ambition to enhance their offerings and provide world-class protection for customers during their travels. The deal will enhance Cover-More’s capabilities with AIG’s global IT platform and global service centers, excluding travel coverages offered through AIG’s A&H business.
Peter Zaffino, CEO of AIG, views the sale as a strategic step in positioning AIG for the future. AIG will collaborate closely with Zurich to ensure a smooth transition for employees, customers, and global distribution partners. Zurich estimates that the acquisition will result in annual gross written premiums of about $2 billion for the new Cover-More Group.
Bank of America analysts see this acquisition as a sensible move by Zurich that could potentially increase earnings per share by 1-2% after integration.
