Zurich to Transfer UK Legacy Employers' Liability Portfolio to Catalina

   By Patrick Costello

Zurich Insurance Group AG (ZURN.EB) said Monday that its subsidiary Zurich Insurance Plc will transfer its U.K. legacy employers' liability portfolio to Catalina Holdings Ltd.

The portfolio includes gross liabilities of $2 billion relating primarily to industrial disease-related claims as of Dec. 31, 2017, Zurich said.

The sale forms part of Zurich's strategy to eliminate or reduce exposure to legacy lines of business, according to Zurich Chief Financial Officer George Quinn.

The transaction will be completed in two steps, with the final transfer of liabilities and policies to Catalina slated to occur within two years, Zurich said.

The company said it expects to see a "small negative impact" on business operating profit in the fourth quarter as a result of transaction costs. Business operating profit should see a small positive improvement in the first quarter of 2019 as a result of the deal, Zurich said.

Write to Patrick Costello at Patrick.Costello@dowjones.com

(END) Dow Jones Newswires

December 17, 2018 01:57 ET (06:57 GMT)

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