Swiss-based insurance giant Zurich Insurance has completed its AUD741m ($554m) acquisition of Australian travel insurance company, Cover-More Group.
The deal was signed in mid-December 2016. The transaction made through Zurich’s subsidiary, Zurich Travel Solutions is being considered as a significant milestone for the insurance giant as it looks to broaden its travel insurance portfolio further and grow in international travel and assistance segments.
Zurich is of the belief that the 100% acquisition of Cover-More will help it become one of the top three travel insurance providers in the world.
Zurich Asia Pacific CEO Jack Howell who called Cover-More to be an excellent business and an excellent fit, said: “It represents a unique opportunity for Zurich to acquire a globally expanding platform and offer capital-light products with low volatility.
“The combination of their products and skills and our reach and international expertise is a win-win for Zurich and Cover-More as we continue to explore new ways to collaborate going forward. We are delighted to welcome them into the Zurich family.”
According to Zurich, Cover-More will retain its brand and operate like before as an independent entity.
Cover-More Group CEO Mike Emmett said: “The acquisition by Zurich, gives our business the ability to pursue our global growth ambitions with the strong backing of Zurich’s brand, reputation and global footprint.”
Zurich’s acquisition proposal was backed by the shareholders of the Australian travel insurance firm along with its board of directors. At the end of last month, the Federal Court of Australia approved the Scheme of Arrangement between the concerned parties.
Image: Zurich Asia Pacific CEO Jack Howell. Photo: courtesy of Zurich.