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Zurich Insurance Group announced on Wednesday its agreement to acquire the personal travel insurance business from U.S.-based American International Group (AIG) for $600 million, aiming to become a leading provider of holiday cover in the U.S.

Zurich To Acquire AIG Travel : Details of the Acquisition

Zurich Insurance Group has signed an agreement to purchase AIG’s global personal travel insurance business, including the Travel Guard brand. The deal also includes provisions for additional cash payments to AIG if certain performance targets are met.

Legal Counsel and Advisors

Zurich was represented by Skadden Arps Slate Meagher & Flom LLP, with partner Elena Coyle leading the advisory team, and Clyde & Co., with partner Peter Hodgins heading their team. AIG received legal counsel from Willkie Farr & Gallagher LLP and Norton Rose Fulbright. Additionally, Evercore Group LLC advised AIG on the financial aspects of the transaction.

Strategic Integration with Cover-More Group

Zurich plans to integrate AIG’s travel insurance unit with its own travel insurance provider, Cover-More Group, to expand its footprint and enhance its retail customer base in the U.S. The Swiss insurer stated that this acquisition will result in combined annual gross written premiums of $2 billion for the enlarged Cover-More Group.

“This transaction is a great strategic fit, which enhances Zurich's existing capabilities and makes us a leading travel insurance provider across all regions,” said Cara Morton, CEO of Zurich Global Ventures, which includes the travel insurance business.

Zurich To Acquire AIG Travel : Technological and Operational Enhancements

The deal will see Zurich acquiring the IT platform used by AIG’s travel business, bolstering Zurich’s app functionalities. Furthermore, Zurich will take over AIG’s global service centers, enhancing its service capabilities.

Regulatory Approvals and Closing Timeline

While the companies have stated that the deal is subject to regulatory approvals, they did not specify which authorities would be involved. They anticipate the transaction will close before December.