Zurich agrees to acquire Australian travel insurer for $554m

Zurich has entered an agreement to acquire Cover-More, a provider of travel insurance and assistance solutions, to expand its travel insurance business.

Cover-More is a market leader in Australia and New Zealand and among the market leaders in India and the US, according to a press release.

Under the transaction, Zurich will acquire 100 percent of the issued share capital of Cover-More. The agreement values the company at approximately $554 million.

Travel insurance is a fast-growing industry, providing a high-margin, capital-light product with low volatility, Zurich said. The proposed acquisition of Cover-More fits Zurich’s aspiration to develop a distinct position in the global travel insurance market, according to the press release. Cover-More represents a unique opportunity for Zurich to acquire a globally expanding platform, deployable across Zurich’s footprint, it added.

“The proposed acquisition is an excellent fit with Zurich’s strategy for its retail business and should create significant value for the Group,” said Jack Howell, Zurich’s CEO of Asia Pacific. “It will further strengthen our position and expertise in the global travel insurance market and support our ambition to expand our distribution partnerships. Through Cover-More’s technology platform, Zurich will be able to attract and serve the needs of retail customers in the growing travel insurance market,” Howell noted.

Rajbir Nanra, chief executive of Zurich’s property and casualty business in Australia and New Zealand added: “The proposed acquisition of Cover-More, which operates globally and is based in Sydney, will see Zurich further strengthening its position and demonstrates its commitment to the Australian market. This acquisition will open up opportunities to explore how we can collaborate with Cover-More to support our local plans in Australia to diversify our product and distribution offering, while staying true to our intermediated broker focus.”