Zurich plots long list of further back book sales to free capital

Zurich Insurance Group is engineering its next line-up of back-book sales in a process of ongoing disposals that could continue “well into the future,” officials have declared.

“There are other parts of the back book that we would like to take action on,” group CFO George Quinn told his company’s Q2 earnings call. “We’re not done yet.”

Next moves may head into other risk types and profit profiles than seen to date, although perhaps more “traditional” than the “relatively unusual” nature of the latest book sold out of Germany.

“They are in the pipeline, just behind the things we’ve just done, and they will take some time.”

Comments follow a recent deal to sell a life book in Germany, the latest box ticked in its capital-light strategy after selling or reinsuring books in Italy, Singapore and the UK.

“To some degree this is a project that never ends, continues well into the future,” Quinn said.

Funds received or capital freed via book disposals will most likely be put to supporting organic growth, the CFO suggested.

“The focus continues to be on the organic plan, the execution of the opportunities we still see across all of our businesses” Quinn said, with caveat not to rule out other options. “It’s good to have the flexibility.

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