Zurich Insurance Group subsidiary, Zurich Insurance, has entered into an agreement with Catalina Insurance Ireland DAC to transfer its German legacy medical malpractice book to Catalina.
The portfolio carries reserves of about $450 million as of December 31st, 2016.
Zurich said the transfer comes as part of a continued risk management effort to free up capital from non-core operations.
“The transaction with Catalina is another example of how the Group is actively managing its capital and legacy liabilities,” said George Quinn, Group Chief Financial Officer (CFO).
“This transaction reduces risk and continues the process of simplifying the Group and releasing capital from non-core activities as communicated at our Investor Day in 2016,” said Quinn.
The transaction remains subject to regulatory and court approvals, and is expected to have a small positive impact on capital and earnings upon completion.
