Zurich swoops for AIG’s global personal travel insurance business
Zurich swoops for AIG’s global personal travel insurance business | Insurance Business Asia
Travel
Zurich swoops for AIG’s global personal travel insurance business
Acquired unit to be combined with Cover-More
Travel
By
Terry Gangcuangco
American International Group (AIG) is selling its global personal travel insurance business to Zurich Insurance Group for US$600 million in cash plus additional earn-out consideration.
On what’s included in the sale, AIG noted: “The agreement includes the Travel Guard business and its servicing capabilities, excluding Japan and our AIG joint venture arrangement in India. Travel coverages offered through AIG’s accident & health business are also excluded from this agreement.”
Expected to close by the end of 2024, the deal will see Zurich combine the acquired operations with its travel insurance provider Cover-More Group.
Commenting on the agreement, AIG chair and chief executive Peter Zaffino said: “Today’s announcement is another important strategic step in positioning AIG for the future.
“I am proud of the work our team has done to establish Travel Guard as a premier provider of personal travel insurance globally, bolstered by strong relationships with some of the world’s largest airlines, online travel agencies, and credit card providers.
“I am confident that Travel Guard will continue its growth and success being part of Zurich Insurance Group. Our AIG colleagues will work closely with Zurich to ensure a seamless transition for employees, customers, and our global distribution partners.”
Meanwhile Cara Morton, CEO of Zurich Global Ventures, had this to say: “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.
“The acquisition expands our retail customer base and aligns with our ambition to continuously enhance our offerings, while providing world-class protection during every step of our customers’ travels.”
According to Zurich, the acquisition is expected to result in combined annual gross written premium of approximately US$2 billion for the enlarged Cover-More Group.
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