Zurich Insurance Group revealed its plans to purchase a portfolio of brokerages for a total value of $760 million. The decision comes following strong performances from both its property-and-casualty and life businesses in the first nine months of the year. The acquisition will be carried out by Zurich’s wholly owned U.S.-based subsidiary, Farmers Group.
As part of the deal, Farmers Group will acquire three brokerage entities, namely Kraft Lake Insurance Agency, Western Star Insurance Services, and Farmers General Insurance Agency. Additionally, the acquisition includes the Farmers Exchanges flood-program servicing arm.
Bolstering Presence in the Indian Market
In addition to the aforementioned acquisitions, Zurich recently obtained a majority stake in Kotak Mahindra Bank’s casualty business, enabling the company to establish a stronger foothold in the Indian market.
Impressive Performance So Far
In the nine months leading up to September 30, Zurich’s property-and-casualty insurance gross written premiums experienced a 9% increase in like-for-like terms, reaching $34.59 billion. Simultaneously, new business premiums in the life arm of the business surged by 23% to $12.17 billion.
Confidence and Future Targets
With such positive momentum, Chief Financial Officer George Quinn expressed confidence in Zurich’s ability to finish the year on a high note and achieve its financial targets for the years 2023-2025.
Strengthening Financial Position
Zurich’s Swiss solvency ratio stood at 266% as of September 30. In light of its solid financial position, the company plans to supplement dividends with an additional share buyback. More details regarding this decision will be shared during an upcoming investor day.