Zurich Insurance Group has announced an agreement to acquire AIG’s global personal travel insurance and assistance arm, known AIG Travel.
The price paid for the deal is $600m, Zurich has said, plus a potential additional earn-out payment.
The business will be combined with Zurich’s travel insurance provider, Cover-More, expanding its US footprint.
Zurich said the acquisition gives Zurich access to a new global retail customer base and makes it a leading travel insurer globally.
The acquisition is expected to result in combined annual gross written premiums of approximately $2bn for the enlarged Cover-More Group, Zurich said.
As part of the acquisition, Zurich will add AIG Travel’s Travel Guard brand to its Cover-More global multi-brand model to expand Cover-More’s US presence and access its distribution partners.
The acquisition is subject to regulatory approval and expected to close before the end of the year.
“Travel insurance is a priority for us,” said Cara Morton, CEO Zurich Global Ventures.
“This transaction is a great strategic fit, which enhances 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 ambition to continuously enhance our offerings, while providing world-class protection during every step of our customers’ travels.”