Zurich has announced that it has entered into a scheme implementation agreement to acquire travel insurance provider Cover-More.
The deal will see the international insurer complete the purchase through its holding company, Zurich Insurance Company and will see the major firm expand to become one of the three biggest providers of travel insurance in the world.
Zurich will acquire 100% of the issued share capital of Cover-More for $1.95 per share, pegging the deal at approximately AU$741 million.
Cover-More will continue to operate as a standalone entity and will retain its brand, Zurich confirmed in a statement.
Rajbir Nanra, chief executive officer of Zurich’s property and casualty business in Australia and New Zealand said that the deal highlights Zurich’s commitment to the Australian and New Zealand markets.
“This acquisition will open up opportunities to explore how we can collaborate with Cover-More to support our local plans in Australia and New Zealand to diversify our product and distribution offering, while staying true to our intermediated broker focus,” Nanra said.
Cover-More chairman, Louis Carroll, said that the deal is in the best interests of staff, shareholders and customers as the board unanimously backed the deal.
“Zurich proposes to operate Cover-More as a discrete business and retain Cover-More’s management team to safeguard the key drivers of Cover-More’s success, including its strong brand and entrepreneurial culture of innovation,” Carroll said.
Mike Emmett, CEO and managing director of Cover-More, noted that the deal will help the travel insurer build on its global ambitions, having recently announced moves into the US market.
Jack Howell, Zurich’s chief executive officer of Asia Pacific welcomed Cover-More to the Zurich Group and said that the deal will create “significant value” for the firm.
“It will further strengthen our position and expertise in the global travel insurance market and support our ambition to expand our distribution partnerships,” Howell said.
“Through Cover-More’s technology platform, Zurich will be able to attract and serve the needs of retail customers in the growing travel insurance market.”
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