Lombard to buy HNWI insurance arm of Zurich Eurolife
Lombard International Assurance is to buy the Luxembourg-based “Private Banking Solutions” business of Zurich Eurolife, as the Zurich Insurance Group continues to shed non-core operations.
The sale is subject to regulatory approvals, and it is expected to complete in the first quarter of this year, according to a statement issued today by Lombard.
In that statement, Zurich Eurolife chief executive Xavier Nevez said his company’s decision to sell the business in Luxembourg, where Lombard is based, was “in line with Zurich Insurance Group’s strategy to focus its investments on businesses and markets where it has a strong and competitive position”.
“In Luxembourg, we continue to focus on corporate risk and savings solutions,” he added.
A Zurich spokesman said that although the division specialised in what the company called “Private Banking Solutions” it was in fact an insurance business, specialising in insurance products for high net worth individuals. Lombard is also known for catering to this end of the market.
Lombard has been growing rapidly by acquisition since it was acquired by Blackstone private equity in October 2014. Last year Blackstone integrated it with a US-based insurance company, Philadelphia Financial, which it bought last July. As of last September, the combined businesses had US$75bn (£68bn) under administration.
Last week, as reported, Lombard announced it was to open offices in Hong Kong and Singapore, in what it said was the first step in a larger expansion into the Asian market.