Zurich Insurance (ZURVY) has announced an agreement to acquire American International Group's (AIG) global personal travel insurance and assistance business for $600 million as part of a strategic move to strengthen its travel insurance division.
How it happened: The acquisition, expected to close by the end of 2024, will combine AIG's operations with Zurich's travel insurer Covermore Group and expand Zurich's presence in the U.S., the company said in a press release Wednesday.
Following the acquisition, the expanded Covermore Group is expected to have annual gross written premiums of approximately $2 billion.
Kara Morton, CEO of Zurich Global Ventures, said of the company's travel insurance efforts: “Travel insurance is a top priority for us. This transaction is a great strategic fit, strengthening Zurich's existing capabilities and positioning us as the leading travel insurance provider across all regions.”
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Why it matters: The acquisition follows AIG's recent move to reduce its stake in Corebridge Financial Inc., selling 120 million shares to Nippon Life Insurance for $3.8 billion. The sale is part of AIG's strategy to streamline operations and focus on its core businesses.
Meanwhile, Zurich's acquisition of AIG's travel business marks an important step in expanding its presence in the U.S. and consolidating its position as a leading travel insurer globally. The move is in line with Zurich's strategic focus to strengthen its insurance offerings and expand its market reach.
Price Action: AIG Inc. shares closed down 1.97% at $74.51 on Tuesday. In after-hours trading, the stock was up 0.94%. Year-to-date, AIG shares have risen 8.24%, according to data from Benzinga Pro.
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Photo credit: Shutterstock
This story was produced with Benzinga Neuro and edited by Kaustubh Bagalkote.
