Zurich Completes $600M Buy of AIG’s Travel Insurance Business

Zurich Insurance Group said Tuesday its acquisition of American International Group’s global personal travel insurance business is complete.

Zurich said the acquisition of AIG’s personal travel insurance and assistance business, including Travel Guard, for $600 million makes it one of the largest global travel insurers in the market worth about $20 billion in gross premiums while strengthening its U.S. presence. Zurich said it now serves more than 20 million customers annually via more than 200 distribution partners.

AIG’s travel business will fold into Zurich’s travel insurance provider, Cover-More Group. When the deal was announced in June, Zurich said Cover-More’s capabilities will be enhanced by AIG’s global IT platform.

“This acquisition significantly boosts our travel insurance capabilities and amplifies our global footprint. By welcoming Travel Guard into Zurich Cover-More, we aim to deliver unmatched services and protection to our customers worldwide that go beyond traditional travel insurance and assistance,” said Cara Morton, CEO of Zurich Global ventures.

The buy may include am earn-out payment if certain targets are met after the sale.

AIG said the sale excludes Japan, AIG’s joint venture arrangement in India, and travel coverages offered through AIG’s Group Accident & Health business.