Global insurer American International Group, Inc. (AIG) has entered into a definitive agreement with Zurich Insurance Group to sell the latter its global individual personal travel insurance and assistance business for $600 million in cash plus additional earn-out consideration.
The sale is expected to close by the end of 2024, subject to customary closing conditions, including regulatory approvals.
The current agreement includes the Travel Guard business and its servicing capabilities, excluding Japan and AIG’s joint venture arrangement in India. Travel coverages offered through AIG’s Accident & Health business are also excluded from this agreement.
The global personal travel insurance and assistance business currently provides a broad range of coverage options and services, including trip cancellation, medical assistance and evacuation. Current policyholders will continue to be covered without disruption or change to their service.
Evercore Group L.L.C. acted as financial advisor; Willkie Farr & Gallagher LLP and Norton Rose Fulbright LLP acted as legal counsel to AIG.
Peter Zaffino, Chairman and Chief Executive Officer, AIG, commented, “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 premier provider of personal travel insurance globally, bolstered 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 being part of Zurich Insurance Group. Our AIG colleagues will work closely with Zurich to ensure a seamless transition for employees, customers and our global distribution partners.”
