Zurich Insurance to Buy Brokerages for $760 Million After Revenue Rises

By Ed Frankl

Zurich Insurance Group said Thursday that will buy a portfolio of brokerages for $760 million, after strong revenue at both its property-and-casualty and especially its life business in the first nine months of the year, with an additional share buyback to come.

The Swiss insurer said its wholly owned U.S.-based Farmers Group will acquire three brokerage entities--Kraft Lake Insurance Agency, Western Star Insurance Services, Farmers General Insurance Agency--and the Farmers Exchanges flood-program servicing arm for $760 million.

It comes after Zurich last week took a majority stake in Kotak Mahindra Bank's casualty business to gain a greater foothold in the Indian market.

Meanwhile, the Swiss insurer said its property-and-casualty insurance gross written premiums rose 9% in like-for-like terms on year to $34.59 billion in the nine months to Sept. 30, while new business premiums at its life arm jumped 23% to $12.17 billion.

The momentum means the company is confident it will finish the year strongly and achieve its financial targets for 2023-25, Chief Financial Officer George Quinn said.

Zurich's Swiss solvency ratio was 266% at Sept. 30, with the company saying it would now supplement the dividend with an additional share buyback. It will update shareholders at an investor day next week.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

November 09, 2023 01:33 ET (06:33 GMT)

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