By Ed Frankl
Zurich Insurance Group said Thursday that will buy a portfolio of brokerages for $760 million, after strong revenue at both its property-and-casualty and especially its life business in the first nine months of the year, with an additional share buyback to come.
The Swiss insurer said its wholly owned U.S.-based Farmers Group will acquire three brokerage entities–Kraft Lake Insurance Agency, Western Star Insurance Services, Farmers General Insurance Agency–and the Farmers Exchanges flood-program servicing arm for $760 million.
It comes after Zurich last week took a majority stake in Kotak Mahindra Bank’s casualty business to gain a greater foothold in the Indian market.
Meanwhile, the Swiss insurer said its property-and-casualty insurance gross written premiums rose 9% in like-for-like terms on year to $34.59 billion in the nine months to Sept. 30, while new business premiums at its life arm jumped 23% to $12.17 billion.
The momentum means the company is confident it will finish the year strongly and achieve its financial targets for 2023-25, Chief Financial Officer George Quinn said.
Zurich’s Swiss solvency ratio was 266% at Sept. 30, with the company saying it would now supplement the dividend with an additional share buyback. It will update shareholders at an investor day next week.
Write to Ed Frankl at [email protected]
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