Zurich Insurance has acquired a travel insurer as it looks to expand its travel insurance portfolio and grow in the global market, it was announced late yesterday.
Sydney-based Cover-More Group Ltd., which has New Zealand headquarters in Auckland and a strong market presence in Australia, the UK, India and the US, has been successfully acquired by Zurich for a cash consideration of approximately AUD $722 million (NZD$782 million).
The acquisition of the travel insurance and assistance solutions provider, made through Zurich’s wholly-owned subsidiary, Zurich Travel Solutions, positions Zurich as a top three global travel insurance provider, the firm said in a release.
“Travel insurance is a fast-growing industry and Cover-More is a recognized leader in this sector,” said Giovanni Giuliani, group chief strategy, innovation and business development officer. “The innovation and capabilities this acquisition brings to Zurich are as important as the new products and services it adds to our portfolio. All of Cover-More’s strengths will be leveraged throughout our business and across our footprint. They will increase our global competitiveness, enhancing our ability to target new customer groups and strengthening our capacity to meet and exceed the needs and expectations of our customers around the world,” he added.
The acquisition received overwhelming support from Cover-More shareholders and its Board of Directors, Zurich said.
Jack Howell, Zurich’s chief executive officer of Asia Pacific, called Cover-More an “excellent business and an excellent fit.” The move represents a “unique opportunity” for Zurich to acquire a globally expanding platform and offer capital-light products with low volatility, he said. “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.”
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