Zurich Insurance Company is hoping to expand its portfolio and become one of the world’s top three travel insurance providers, through the purchase of Cover-More Group Limited.

Revealed this week, the parent company of North Sydney-based Zurich Financial Services Australia Limited, has proposed the 100 percent buyout of issued share capital in the ASX-listed company for AU$1,95 cash per share.

According to a statement from Zurich, the acquisition of Cover-More would represent an important step by the business to expand its portfolio of products and services to become a top three global travel insurance provider.

travel insurance

“The proposed acquisition is an excellent fit with Zurich’s strategy for its retail business and should create significant value for the Group.”

Jack Howell, Zurich Chief Executive of Asia Pacific

“It will further strengthen our position and expertise in the global travel insurance market and support our ambition to expand our distribution partnerships.

“Through Cover-More’s technology platform, Zurich will be able to attract and serve the needs of retail customers in the growing travel insurance market.”

The proposal is subject to fulfillment of a number of customary conditions, however, Cover-More’s Board of Directors have unanimously recommended that its shareholders vote in favor of the purchase.

Zurich’s Chief Executive, Rajbir Nanra, added that the acquisition would open up opportunities for the two companies to collaborate and support plans to diversify product and distribution in Australia.

The company has also assured that under new ownership, Cover-More would continue to operate as a standalone entity and will retain its brand.

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