Zurich creates LatAm hub through acquisition
Zurich Insurance Group has entered into an agreement to acquire 19 Latin American traveller assistance providers operating under the Travel Ace and Universal Assistance brands.
The transaction is set to accelerate the growth of Zurich’s Cover-More business in Latin America. Zurich acquired the Australian travel insurer Cover-More Group in a A$741 million ($565 million) deal in April 2017.
The combined Travel Ace and Universal Assistance brands hold the leading market position in Argentina and the number two market position in Brazil, according to Zurich. Cover-More already operates in 14 countries and is among the market leaders in Australia, India and the US.
Under Zurich’s ownership, the newly acquired operations will form Cover-More’s Latin America hub, while the products will continue to use the Travel Ace and Universal Assistance brands. The transaction encompasses 19 legal entities operating throughout Latin America, most notably in Argentina, Brazil, Chile, Colombia and Mexico. The transaction is expected to close in the second quarter of 2018.
Cover-More chief executive officer Mike Emmett said that the transaction was an opportunity to reshape travel assistance in Latin American markets by deploying Cover-More’s specialist expertise.
“Cover-More’s customer offering is underpinned by proprietary technology, a strong culture of traveller assistance and a global servicing capability," Emmett said. "This transaction gives us immediate access to new customers and scale across Latin America, which is among the fastest growing travel insurance and assistance markets worldwide. It will also enable us to better support our customers travelling to Latin America.”
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