Swiss insurance giant Zurich said it has completed its acquisition of Australia-based Cover-More Ltd, making it a “top three global travel insurance provider”.
Zurich is acquiring 100% of the issued share capital of Cover-More, through its wholly-owned subsidiary, Zurich Travel Solutions, for around A$722m (US$551m). The deal was approved by Cover-More shareholders and its board on 31 March.
Based in Sydney, with a market presence in Australia, India and the US – and activities as well in China, Indonesia, Malaysia, New Zealand and the UK – Cover-More was founded in 1986. According to its website, it “has been protecting the travel dreams of Australians travelling domestically and internationally” ever since. It listed on the Australian Securities Exchange in 2013, when, it notes, it became the ASX’s “first specialist travel insurance company”.
Last year it says it provided travel insurance to 3.8 million travellers, and helped another 42,000 customers with “emergency assistance”.
In a statement, Zurich said it expected the just-completed deal would enable it to “significantly expand” its travel insurance portfolio, as well as to “grow in [the] global travel and assistance markets”.
Giuliani, Group chief strategy, innovation and business development officer for Zurich, with responsibility for Zurich’s travel business worldwide, noted that travel insurance “is a fast-growing industry”, and that Cover-More had become one of its largest players.
Zurich plans to “leverage” Cover-More’s strengths “throughout our business and across our footprint”, he added.
“They will increase our global competitiveness, enhancing our ability to target new customer groups, and strengthening our capacity to meet and exceed the needs and expectations of our customers around the world.”
Zurich said it intends to retain the Cover-More branding, and operate the business “as a discrete entity” rather than subsuming it into Zurich.
SIX Swiss Exchange-listed Zurich Insurance Group is one of the world’s largest insurance companies, with some 54,000 employees, and it’s active in more than 210 countries and territories.
It was founded in 1872.