Zurich Insurance Group made headlines Tuesday with the completion of its $600 million acquisition of AIG’s personal travel insurance business, marking a significant milestone in the global insurance market. This move propels Zurich into one of the largest players in the travel insurance sector, promising to shake up an already competitive industry.
Zurich Buys AIG Travel : The Strategic Deal
The acquisition, first announced in June, includes AIG’s Travel Guard brand and expands Zurich’s travel insurance offerings across the globe. As part of the deal, Zurich will pay a potential earn-out payment contingent on the travel insurance business meeting certain performance targets. The deal strengthens Zurich’s position in the ever-growing travel insurance industry, which is valued at $20 billion in gross written premiums globally.
Zurich, listed on the SIX Swiss Exchange, noted that the acquisition not only enhances its travel insurance capabilities but also broadens its global footprint. With this purchase, Zurich has effectively merged AIG’s assets with its own travel insurance provider, Cover-More Group, to create Zurich Cover-More.
A New Powerhouse in Travel Insurance
The newly formed Zurich Cover-More will combine AIG’s Travel Guard, Travelex Insurance, and Cover-More Travel Insurance subsidiaries, alongside World Travel Protection, Blue Insurance, and Universal Assistance. These entities will continue to operate under their own brands in their respective markets, but the umbrella company will oversee all operations.
