Zurich Sells Italian Life and Pensions Book
Zurich Insurance in January 2022 announced the sale of an Italian life and pension portfolio to Portuguese carrier GamaLife – Companhia de Seguros de Vida. The stated purpose is to reduce Zurich’s solvency requirements and free up capital.
The amount of the transaction has not been disclosed, but the press release states that the Solvency Capital Requirement under Swiss solvency rules will “decrease by approximately $1.2 billion.” and that the group cash position is expected to see a $200 million increase.
The transaction is intended to limit Zurich’s exposure to interest rate movements and credit risk; it is expected to be effective in the second half of 2022, after regulatory approvals.
Despite the sale, Zurich remains interested in the Italian market. According to Zurich Insurance CFO George Quinn, “the Italian life and pensions market is important to us. The recent acquisition of Deutsche Bank’s Italian financial advisor network provides a solid foundation to strengthen our growth in our preferred products.”
GamaLife is a pan-European life and wealth management consolidation platform, focused on businesses with high improvement potential. Backed by Apax Partners, it was founded in 2019. GamaLife in Portugal holds total assets of EUR 3.7 billion.