Zurich to sell its Italian life and pensions back book to GamaLife
Zurich Insurance Group announced that its subsidiary Zurich Investments Life S.p.A. has agreed to sell its life and pension back book, composed of both traditional and unit-linked policies, to the Portuguese insurance company GamaLife – Companhia de Seguros de Vida, S.A.
The transaction does not change contractual obligations toward policyholders and distributors. Zurich will continue to offer innovative protection and unit-linked solutions to customers in Italy.
The transaction will see approximately $9.5 billion of net reserves transferred to GamaLife. On completion of the transaction, Zurich’s capital requirement under the Swiss Solvency Test is expected to decrease by approximately $1.2 billion, adding approximately 11 percentage points to the Swiss Solvency Test ratio. In addition, the transaction is expected to increase the Group’s liquidity by approximately $200 million.
“The sale demonstrates our commitment to improve capital utilization across our life back book. The transaction also reduces our exposure to interest rates and credit risks and allows us to focus on the parts of the Italian life and pensions market where we can best serve our customers. We are confident that GamaLife will continue to provide our customers with the same high quality of service that they expect. The Italian life insurance and pension market is important for us and the recent acquisition of Deutsche Bank’s Italian financial advisor network provides a strong platform for further growth in our preferred products.” – Group chief financial officer George Quinn.
“Together with Zurich, we believe this transaction represents strong strategic alignment between GamaLife’s focus on sustainable growth and Zurich’s intention to exit legacy business in Italy. We look forward to welcoming Zurich’s customers. Our focus will be to ensure a seamless transition for all local stakeholders and to bring our values of innovation, simplicity and service across the enlarged GamaLife group.” – Matteo Castelvetri, CEO of GamaLife Group.
The completion of the transaction is anticipated to take place in the second half of this year, subject to regulatory approvals.