Zurich Buys Australia’s Largest Travel Insurer, Cover-More, for US$551M
Zurich Insurance Group has successfully acquired Cover-More Group Ltd., a leading travel insurance and assistance solutions provider based in Sydney with a strong market position in Australia, India and the U.S.
This transaction is an important milestone for Zurich as it looks to significantly expand its travel insurance portfolio and grow in global travel and assistance markets. The acquisition of Cover-More positions Zurich as a top three global travel insurance provider, Zurich said in a statement.
Zurich, through its wholly owned subsidiary, Zurich Travel Solutions Pty Ltd., has acquired 100 percent of the issued share capital of Cover-More for a net purchase price of approximately A$722 million (US$551 million), or A$1.90 per share.
The acquisition received overwhelming support from Cover-More shareholders and its board of directors and received the approval of the Scheme of Arrangement by the Federal Court of Australia on March 31, 2017, the company statement added.
“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, with responsibility for Zurich’s travel business worldwide.
“The innovation and capabilities this acquisition brings to Zurich are as important as the new products and services it adds to our portfolio,” he said.
Cover-More “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,” Giuliani added.
“Cover-More is an excellent business and an excellent fit,” Jack Howell, Zurich’s chief executive officer of Asia Pacific.
“It represents a unique opportunity for Zurich to acquire a globally expanding platform and offer capital-light products with low volatility,” he affirmed.
“The acquisition by Zurich, gives our business the ability to pursue our global growth ambitions with the strong backing of Zurich’s brand, reputation and global footprint,” Mike Emmett, Group Chief Executive Officer, Cover-More Group said.
Cover-More will continue to operate as a discrete entity and will retain its brand.
Source: Zurich Insurance Group
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