The acquisition is currently subject to regulatory approval, but is expected to close by the end of this year.
Following the takeover, the business will be merged with Zurich’s own travel insurance provider, Cover-More Group, increasing the latter company’s footprint in the US.
The combined business is expected to result in total annual gross written premiums of around $2 billion.
As part of the deal, Zurich will acquire AIG Travel’s well-established Travel Guard brand, as well as gaining access to the company’s IT platform, global service centres, and network of distribution partners and customers.
“Travel insurance is a priority for us,” said Cara Morton, CEO of 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.”
Zurich previously announced a partnership with Blink Parametric to integrate its real-time flight delay solution into the Zurich Edge platform.