Zurich Insurance coverage Group (Zurich) has introduced plans to purchase a portfolio of brokerages in a deal valued at $760m.
Zurich’s wholly owned subsidiary Farmers Group (FGI) will purchase Kraft Lake Insurance coverage Company, Western Star Insurance coverage Providers and Farmers Basic Insurance coverage Company.
The US-based FGI can be buying the flood programme servicing unit of the Farmers Exchanges, a subsidiary of Zurich.
Zurich expects the acquisition of the brokerages to bolster FGI’s capabilities in supporting the Farmers Exchanges and generate a further supply of revenue.
As its attorney-in-fact, FGI gives the Farmers Exchanges sure non-claims companies and auxiliary companies.
Zurich made the announcement as a part of the replace in the course of the first 9 months of 2023.
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The Swiss insurer stated its property and casualty (P&C) division’s gross written premiums (GWP) elevated by 9% to $34.59bn from $32.08bn within the interval final yr.
Zurich attributed that development to improved premium charges in P&C.
Within the first three quarters of 2023, the corporate’s life insurance coverage unit’s new enterprise premiums surged by 23% year-on-year on a like-for-like foundation to $12.16bn.
Development within the life insurance coverage enterprise was primarily as a result of joint ventures with Banco Santander and Banco Sabadell, Zurich stated.
Excessive gross sales of retail financial savings helped Banco Sabadell in Spain, whereas unit-linked and short-term safety merchandise helped Banco Santander in Latin America develop enterprise, it added.
Zurich Group CFO George Quinn stated: “We maintained momentum within the third quarter, delivering continued top-line development following a really robust first half of the yr and an important begin to the brand new monetary cycle. This makes us assured that we’ll have the ability to end the yr strongly and obtain our monetary targets for 2023–2025.”
Final week, Zurich introduced its foray into the Indian insurance coverage market by buying a 51% stake in Kotak Mahindra Basic Insurance coverage Firm for $488m (SFr441.34m).
Each FGI and India offers are topic to regulatory approvals.
