Deals: Zurich Sells German Life Back Book

Zurich Insurance Group (Zurich) has agreed to sell its legacy traditional life insurance back book in Germany to Viridium Holding AG (Viridium), a leading specialist in the management of life insurance portfolios in Germany.

“This is, perhaps, the most important step in our efforts to reduce the capital intensity of Zurich’s legacy life portfolios and to lower our exposure to interest rates. As indicated at last year’s investor day, the priorities for capital released by disposals are the elimination of earnings dilution as well as supporting growth,” said Group Chief Financial Officer George Quinn. “Germany is one of our most important markets and has been a significant driver of our customer growth. We will support our team in Germany with the resources required to ensure that this profitable growth continues.”

The transaction includes the transfer of USD 20 billion of net reserves, mainly related to annuity and endowment products underwritten more than five years ago.

On completion, Zurich’s Swiss Solvency Test ratio is expected to increase by approximately 8 percentage points.

The sale is subject to regulatory approvals and will not change the contractual obligations to customers and distribution partners. As a leading specialist insurer in Germany, Viridium is committed to maintaining the high levels of service that our clients expect.

About alastair walker 9297 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.