Zurich Financial Services Group has today announced that one of Zurich's non-core subsidiaries in the UK, Zurich Specialties London Ltd, will transfer its run off insurance business to Swiss Re at book value.
This transaction forms an integral part of Zurich’s announced strategy to divest most of its non-core businesses to release and redeploy USD 1.5 billion of capital and focus on enhancing its propositions in its chosen target markets. It is expected that the transaction will allow repatriation over time of regulatory capital from Zurich Specialties London Ltd to its parent of approximately USD 360 million.
Zurich Specialties London Ltd has signed an agreement to transfer its run off insurance business to Swiss Re. The business is predominantly comprised of US and UK broker placed commercial casualty policies written on both a direct and assumed basis. Zurich Specialties London Ltd has not underwritten new policies since 2005. Zurich and Swiss Re have signed a reinsurance agreement which transfers the benefits and risks of this portfolio as of April 1, 2011 from Zurich to Swiss Re until the transfer is completed. Zurich will transfer approximately USD 950 million in gross assets and liabilities to Swiss Re.
The completion of this transaction is subject to certain conditions including regulatory review and court approval. None of Zurich Specialties London Ltd’s customers will be materially affected by the transaction and their terms and conditions will continue to apply. Zurich will be notifying all affected policyholders as part of the process to formally transfer the business to Swiss Re.