ZURICH — Zurich Insurance Group has successfully acquired Cover-More Group Limited, a leading travel insurance and assistance solutions provider based in Sydney.
Zurich, through its wholly-owned subsidiary Zurich Travel Solutions Pty Limited, has acquired 100% of the issued share capital of Cover-More. The cash consideration amounts to AUD 1.90 per share, approximately US$551 million in total. This amounts to approximately $565 million per share total consideration gross of the dividend distribution.
With this transaction, Zurich significantly expands its travel insurance portfolio, positioning it as “a top three global travel insurance provider”, according to an official company release. The acquisition received overwhelming support from Cover-More shareholders and its Board of Directors.
“Travel insurance is a fast-growing industry and Cover-More is a recognized leader in this sector,” said Giovanni Giuliani, Group Chief Strategy, Innovation and Business Development Officer, with responsibility for Zurich’s travel business worldwide. “The innovation and capabilities this acquisition brings to Zurich are as important as the new products and services it adds to our portfolio. All of Cover-More’s strengths will be leveraged throughout our business and across our footprint. 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.”
Jack Howell, Zurich’s Chief Executive Officer of Asia Pacific, added: “Cover-More is an excellent business and an excellent fit. It represents a unique opportunity for Zurich to acquire a globally expanding platform and offer capital-light products with low volatility. The combination of their products and skills and our reach and international expertise is a win-win for Zurich and Cover-More as we continue to explore new ways to collaborate going forward. We are delighted to welcome them into the Zurich family.”
Cover-More will continue to operate as a discrete entity and will retain its brand. To learn more about Cover-More, read our interview with Carole Takody, CEO, US & Canada, Global Direct here: travelweek.ca/news/cover-sets-sights-canadian-insurance-market-operations-scheduled-launch-years-end.