AIG sells global personal travel insurance business to Zurich | Insurance business America
Deal “another important strategic step,” says CEO
Travel
By Terry Gangcuangco
American International Group (AIG) is selling its global personal travel insurance business to Zurich Insurance Group for $600 million in cash plus additional earn-out consideration.
Regarding what is included in the sale, AIG noted: “The agreement includes the Travel Guard business and its service capabilities, excluding Japan and our AIG joint venture agreement in India.” Travel insurance offered through AIG’s accident and health insurance business , are also excluded from this agreement.”
The deal is expected to be completed by the end of 2024 and will see Zurich combine the acquired activities with its travel insurance provider Cover-More Group.
Commenting on the agreement, Peter Zaffino, Chairman and CEO of AIG, 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 global leader in personal travel insurance, supported 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 as part of the Zurich Insurance Group. Our AIG colleagues will work closely with Zurich to ensure a seamless transition for employees, customers and our global channel partners.”
Meanwhile, Cara Morton, CEO of Zurich Global Ventures, said: “Travel insurance is a priority for us. This transaction is an excellent strategic fit that expands 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 commitment to continually improve our offerings while providing our customers with best-in-class protection at every step of their journey.”
Zurich said the acquisition is expected to result in total annual gross premiums of approximately $2 billion for the enlarged Cover More group.
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2024-06-26 06:00:00
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