Zurich Insurance to Buy Brokerages for $760 Million After Revenue Rises

By Ed Frankl

Zurich Insurance Group said Thursday that will buy a portfolio of brokerages for $760 million, after strong revenue at both its property-and-casualty and especially its life business in the first nine months of the year, with an additional share buyback to come.

The Swiss insurer said its wholly owned U.S.-based Farmers Group will acquire three brokerage entities--Kraft Lake Insurance Agency, Western Star Insurance Services, Farmers General Insurance Agency--and the Farmers Exchanges flood-program servicing arm for $760 million.

It comes after Zurich last week took a majority stake in Kotak Mahindra Bank's casualty business to gain a greater foothold in the Indian market.

Meanwhile, the Swiss insurer said its property-and-casualty insurance gross written premiums rose 9% in like-for-like terms on year to $34.59 billion in the nine months to Sept. 30, while new business premiums at its life arm jumped 23% to $12.17 billion.

The momentum means the company is confident it will finish the year strongly and achieve its financial targets for 2023-25, Chief Financial Officer George Quinn said.

Zurich's Swiss solvency ratio was 266% at Sept. 30, with the company saying it would now supplement the dividend with an additional share buyback. It will update shareholders at an investor day next week.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

November 09, 2023 01:33 ET (06:33 GMT)

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