Zurich Insurance Announces $600M Acquisition Of AIG's Global Personal Travel Insurance Business To Bolster US Presence

In a strategic move to bolster its travel insurance arm, Zurich Insurance ZURVY announced a $600 million deal to acquire the global personal travel insurance and assistance business of American International Group Inc. AIG.

What Happened: The acquisition, which is expected to be finalized by the end of 2024, will see the AIG business integrated with Zurich’s travel insurance provider, Cover-More Group, expanding Zurich’s presence in the U.S., the company said in a press release on Wednesday.

Following the acquisition, the combined annual gross written premiums for the expanded Cover-More Group are projected to be around $2 billion.

CEO of Zurich Global Ventures, Cara Morton, expressed the company’s commitment to travel insurance, stating, “Travel insurance is a priority for us. This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions.”

See Also: Cathie Wood-Led Ark Invest Dumps $4.3M Worth Of Nvidia Shares Amid Rebound — Swoops Into Buy Stock Of This Netflix Rival

Why It Matters: This acquisition comes on the heels of AIG’s recent move to reduce its stake in Corebridge Financial Inc. and sell 120 million shares to Nippon Life for $3.8 billion. This divestment was part of AIG’s strategy to streamline its operations and focus on its core businesses.

Meanwhile, Zurich’s acquisition of AIG’s travel business is a significant step in expanding its presence in the U.S. and consolidating its position as a leading travel insurance provider globally. This move aligns with Zurich’s strategic focus on strengthening its insurance offerings and expanding its market reach.

Price Action: AIG Inc. stock closed at $74.51 on Tuesday, declining 1.97%. In after-hours trading, the stock rose by 0.94%. Year to date, AIG’s stock has increased by 8.24%, according to data from Benzinga Pro.

Read Next: ‘Stock Market Has A Bad Breadth Problem Again,’ Veteran Wall Street Investor Warns

Photo courtesy: Shutterstock

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesM&ANewsGlobalMarketsInsuranceKaustubh BagalkoteTravel InsuranceZurich Insurance
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!