Zurich Australia “not for sale” – Company – Insurance News

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Zurich Insurance Group has apparently given up on a plan to sell its Australian general insurance assets.

A German insurance publication reported late last week that the global group’s CEO, Mario Greco, had made it clear that the company would retain its Australian general insurance business.

As stated in an insuranceNEWS.com.au Breaking News earlier today, German magazine Versicherungswirtschaft-heute [Insurance Business Today] quotes Mr. Greco saying that Zurich “intends to stay in the Australian P&C insurance business”.

Zurich Australia has consistently refused to discuss the matter with the media, calling it “market speculation”.

Nonetheless, the proposed sale of the business received considerable media attention, with the leading US publication Business Insurance reporting in September that a sale of Australian General Insurance’s “non-core” assets was being considered at the time. that the Zurich group “is looking to rationalize its portfolio”.

He said Zurich was working with an adviser on the potential divestment.

The Australian newspaper has published several reports over the past few months speculating on potential buyers. In January, he quoted “sources familiar with the auction” as saying the sale process would be completed within a month, with the business expected to fetch between $400 million and $600 million.

Suncorp, QBE, Chubb and Allianz have been named as likely bidders.

It is understood that the Cover-More travel insurance business, which Zurich acquired for $741 million in 2017, was not included in the proposed sale.

The thriving life and investments division has not been mentioned in any sales speculation, with Zurich acquiring ANZ Bank’s life insurance business for $2.85 billion in 2019.

The Australian general insurance business recorded an underwriting loss of $124 million in 2020, following an underwriting loss of $4 million in 2019. It recorded a pre-tax loss of $78 million in 2020, against a profit of $87 million in 2019.

However, Zurich Group announced earlier this month that its P&C business profit last year showed 50% growth in operating profit and a 4.1 percentage point drop in its combined ratio. at 94.3% – its lowest level since 2006.

All regions were reported as contributors to growth, including Australia, which Zurich said benefited from a partial recovery in travel insurance and a better performance in commercial insurance.

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