Zurich Insurance Group subsidiary Farmers New World Life has signed an agreement with Reinsurance Group of America to reinsure a portion of its closed US annuity book, representing reserves of about $2.3bn.
The transaction reflects Zurich management's continued efforts to reduce tail risk, make better use of capital and enhance the overall profitability of the Group.
George Quinn, Group Chief Financial Officer, said: "The transaction with Reinsurance Group of America is another example of how the Group actively manages its capital and sharpens its business profile. This transaction reduces risk and continues the process of simplifying the group and releasing capital from non core activities as communicated at the time of our investor day in 2016."
Farmers New World Life will continue to service and administer the policies.