Zurich Insurance to Buy Brokerages for $760 Million After Revenue Rises
November 09 2023 - 1:48AM
Dow Jones News
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)
Copyright (c) 2023 Dow Jones & Company, Inc.
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