Zurich Insurance to acquire AIG Travel for $600m to expand global presence in travel insurance
Zurich Insurance Group has announced a significant expansion in the travel insurance sector with its acquisition of AIG’s global personal travel insurance and assistance business, AIG Travel, for USD 600 million. This deal also includes a potential additional earn-out payment and is set to merge AIG Travel with Zurich’s subsidiary, Cover-More Group, significantly enhancing Zurich’s footprint, especially in the U.S. market.
Cara Morton, CEO of Zurich Global Ventures, highlighted the strategic importance of this acquisition: “Travel insurance is a priority for us. This transaction enhances Zurich’s existing capabilities and positions us as a leading travel insurance provider across all regions.” The acquisition is not only a strategic fit but also expands Zurich’s retail customer base and aligns with its ambition to enhance offerings and provide world-class protection for customers throughout their travels.
As part of the acquisition, Zurich will incorporate AIG Travel’s renowned Travel Guard brand into the Cover-More’s global multi-brand model. This move is aimed at boosting Cover-More’s presence in the U.S. and enhancing access to high-quality distribution partners. Additionally, the integration of AIG Travel’s global IT platform will bolster Cover-More’s capabilities, allowing it to extend its award-winning travel assistance applications to a broader set of partners and customers.
The acquisition is projected to bring the combined annual gross written premiums to approximately USD 2 billion for the enlarged Cover-More Group. However, it is expected to result in a reduction of about 4 percentage points in the Swiss Solvency Test (SST) ratio, reflecting the substantial investment and initial integration costs.
The completion of this acquisition is subject to regulatory approvals and is anticipated to close before the end of the year. This strategic move is expected to significantly enhance Zurich’s position as a global leader in travel insurance, broadening its reach and service capabilities across multiple regions
This acquisition by Zurich Insurance Group represents a significant step in consolidating its position as a global leader in the travel insurance market. By integrating AIG Travel’s assets and capabilities, Zurich not only expands its service offerings but also enhances its competitive edge in a rapidly evolving insurance landscape.