Zurich to buy AIG’s personal travel business for $600 million
Zurich is acquiring AIG’s global personal travel insurance and assistance business (AIG Travel) for $600 million, plus a potential additional earn-out payment, pending regulatory approvals. The business will be combined with Zurich’s travel insurance provider Cover-More and will expand its footprint in the US. The acquisition gives Zurich access to a new global retail customer base and makes it a leading travel insurer globally.
“Travel insurance is a priority for us. 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.” – Cara Morton, CEO at Zurich Global Ventures .
As part of the acquisition, Zurich will add AIG Travel’s Travel Guard brand to its Cover-More model and acquire AIG Travel’s global service centers, 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.
“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.” – Peter Zaffino, Chairman and Chief Executive Officer of AIG .
In 2017, Zurich acquired the Australian travel insurance provider Cover-More for $546 million. Last month, NSM Insurance Group has agreed to buy UK-based InsurEVO, a specialist personal lines travel MGA with over three million customers that operates AllClear and InsureandGo.
When it comes to embedded insurance, AIG has partnerships in place with Spirit Airlines, Frontier Airlines, United Airlines, and Expedia. However, Frontier Airlines no longer offers Travel Guard as part of its booking flow, and Expedia is now also working with Generali.
Bottom Line: The acquisition is expected to result in combined annual gross written premiums of approximately $2 billion for the enlarged Cover-More Group.
