Zurich Insurance will free up around $ 1.2 billion in capital by selling its Italian life and pension portfolio to Portuguese insurer GamaLife, the Swiss company said on Monday.
The deal will also add 11 percentage points to its Swiss solvency test ratio and significantly reduce exposure to credit risk, Zurich said.
The transaction is expected to increase Zurich’s liquidity by around $ 200 million, Zurich said, including cash consideration of around $ 148 million.
An older book consists of older fonts that remain in the books as paid fonts.
“The sale demonstrates our commitment to improving the use of capital across our entire life portfolio,” Zurich CFO George Quinn said in a statement.
“The transaction also reduces our exposure to interest rates and credit risk and allows us to focus on those segments of the Italian life and pensions market where we can best serve our clients. “
The agreement does not change contractual obligations to policyholders and distributors, said Zurich, which will continue to be active in the Italian life insurance and pension market.
The Swiss company struck a deal with Deutsche Bank to buy its network of financial advisers in Italy last year.
(Reporting by John Revill; editing by Riham Alkousaa and David Goodman)
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