Zurich is buying AIG’s global personal travel insurance business

Zurich Insurance Group has announced an agreement to acquire AIG’s global personal travel insurance and assistance arm, known AIG Travel.

The price paid for the deal is $600m, Zurich has said, plus a potential additional earn-out payment.

The business will be combined with Zurich’s travel insurance provider, Cover-More, expanding its US footprint.

Zurich said the acquisition gives Zurich access to a new global retail customer base and makes it a leading travel insurer globally.

The acquisition is expected to result in combined annual gross written premiums of approximately $2bn for the enlarged Cover-More Group, Zurich said.

As part of the acquisition, Zurich will add AIG Travel’s Travel Guard brand to its Cover-More global multi-brand model to expand Cover-More’s US presence and access its distribution partners.

The acquisition is subject to regulatory approval and expected to close before the end of the year.

“Travel insurance is a priority for us,” said Cara Morton, CEO 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.”