Global insurer Zurich is reportedly considering a sale of an Italian portfolio of life insurance policies worth around €200 million, according to sources at Reuters.
The publication said that Zurich could also be looking to sell its German life back book business, and is working with UBS to explore options.
Many life insurers have been looking to offload business in recent months as negative interest rates weigh on performance.
The challenge of paying guaranteed returns on some life policies coupled with more stringent European capital rules has already prompted firms such as Generali and Prudential to sell life portfolios which are closed to new customers, Reuters noted.
On the sale of Zurich’s German business, analysts added that a deal be difficult as all of the company’s business in the country is housed under Deutscher Herold, which uses the cash flow from the back book to fund its new business.
A spokesperson for Zurich declined to comment on the possibility of a sale, but maintained: “Zurich is one of the financially strongest insurers in Germany and will continue focusing on retail P&C and life insurance as well as our commercial insurance business.”
