Zurich to acquire brokerages in a $760 million deal
Zurich has reported substantial growth in its Property & Casualty (P&C) and Life insurance sectors for the first nine months of the year. P&C revenue soared by 9%, driven by growth in both commercial and retail insurance and aided by a 6% rate increase.
Life insurance new business premiums saw a 23% rise, while Farmers Exchanges witnessed a 2% growth in gross written premiums.
The company’s strategic moves include the planned acquisition of three brokerage entities and a flood program servicing arm for $760 million, anticipated to enhance customer offerings and retention.
Specifically, the brokerages (Kraft Lake Insurance Agency, Western Star Insurance Services and Farmers General Insurance Agency) will enable the Farmers Exchanges to create a more attractive customer proposition with a broader range of products and services which are expected to improve customer retention and new customer acquisition. The brokerages offer alternative insurance options for the more than 7 million Farmers Exchanges quotes that are currently not taken up by customers.
Additionally, a strategic alliance with India’s Kotak Mahindra Bank through a 51% stake in its general insurance company positions Zurich to become a leading insurer in the Indian market.