Reinsurance News

Zurich to sell German legacy traditional life book to Viridium

24th June 2022 - Author: Matt Sheehan

Zurich Insurance Group has agreed to sell its legacy traditional life insurance back book in Germany to Viridium Holding AG, a specialist in the management of life insurance portfolios in the country.

Zurich LogoThe transaction includes the transfer of $20 billion of net reserves, mainly related to annuity and endowment products underwritten more than five years ago.

On completion, Zurich’s Swiss Solvency Test ratio is expected to increase by approximately eight percentage points.

“This is, perhaps, the most important step in our efforts to reduce the capital intensity of Zurich’s legacy life portfolios and to lower our exposure to interest rates,” explained Group Chief Financial Officer George Quinn.

“As indicated at last year’s investor day, the priorities for capital released by disposals are the elimination of earnings dilution as well as supporting growth,” Quinn continued.

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“Germany is one of our most important markets and has been a significant driver of our customer growth. We will support our team in Germany with the resources required to ensure that this profitable growth continues.”

The sale remains subject to regulatory approvals and Zurich assures that the deal will not change the contractual obligations to customers and distribution partners.

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