Zurich announced on Wednesday that it will be acquiring the global personal travel insurance business of American International Group (AIG) for $600 million. The deal is expected to be finalized by the end of 2024 and may include an additional payment if specific targets are achieved post-sale.
According to Zurich, travel insurance is a top priority for them and acquiring AIG’s Travel Guard business will expand their presence in the U.S. 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.
The CEO of Zurich Global Ventures, Cara Morton, described the transaction as a strategic fit that enhances Zurich’s existing capabilities and solidifies their position as a top travel insurance provider. By integrating AIG’s global IT platform and service centers, Cover-More’s capabilities will be significantly enhanced.
AIG’s CEO, Peter Zaffino, stated that the sale is a crucial step in positioning AIG for the future and ensuring a smooth transition for employees, customers, and distribution partners. The deal excludes travel coverages offered through AIG’s A&H business.
The acquisition is expected to result in annual gross written premiums of around $2 billion for the new Cover-More Group. Analysts at Bank of America believe that Zurich’s acquisition is a sensible move that could potentially increase earnings per share by 1-2% after integration.