Zurich Insurance Group is significantly enhancing its position in the global travel insurance market. On Tuesday, the company announced its acquisition of AIG's global travel insurance and assistance business for private clients, including Travel Guard. The purchase price is $600 million, with the potential for an additional earn-out payment.

With the acquisition complete, Zurich has become a leading global travel insurer, serving over 20 million customers and collaborating with 200 distribution partners worldwide, according to the announcement.

Expansion Builds on Prior Acquisition of Cover-More Group

In April 2017, Zurich had already acquired Cover-More Group Limited, a leading provider of travel insurance and assistance solutions headquartered in Sydney. Cover-More holds a dominant market position in Australia, India, and the United States.

Headquarters of «Zurich Cover-More» to Be in the US

The newly acquired AIG private client travel insurance and assistance business will now be merged with Cover-More. Operating under the name «Zurich Cover-More», the combined entity will be headquartered in the US.

David Fike, who was appointed CEO of Cover-More in July, will lead the newly formed company.

«This acquisition significantly enhances our existing travel insurance capabilities and expands our global presence,» said Cara Morton, CEO of Zurich Global Ventures. She added that Zurich aims to provide services and protection that go beyond traditional travel insurance and assistance.

Financial and Regulatory Impacts

The transaction has reduced Zurich's Swiss Solvency Test (SST) ratio by five percentage points. All necessary regulatory approvals have been obtained.