Zurich Insurance to Sell Legacy Traditional Life-Insurance Back Book in Germany
June 24 2022 - 3:20AM
Dow Jones News
By Mauro Orru
Zurich Insurance Group AG on Friday said it had agreed to sell
its legacy traditional life-insurance back book in Germany to
specialist insurer Viridium Holding AG, in a move to shield its
business from rising interest rates as central banks move to curb
inflation.
The Swiss insurance giant said the deal, which includes the
transfer of $20 billion in net reserves, would add 8 percentage
points to its Swiss solvency test ratio--a measure to assess the
capitalization of insurance companies.
"This is, perhaps, the most important step in our efforts to
reduce the capital intensity of Zurich's legacy life portfolios and
to lower our exposure to interest rates," Chief Financial Officer
George Quinn said.
"As indicated at last year's investor day, the priorities for
capital released by disposals are the elimination of earnings
dilution as well as supporting growth," Mr. Quinn added.
Zurich Insurance said it would continue to invest in Germany,
one of its most important markets, despite the move it said was
needed to protect against volatility.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
June 24, 2022 03:05 ET (07:05 GMT)
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