Zurich buys Sydney-based travel insurance provider Cover-More
Zurich Insurance Group has acquired 100% of the issued share capital of Cover-More Group Limited, a leading travel insurance and assistance solutions provider based in Sydney with a strong market position in Australia, India and the US. Zurich said it is looking to significantly expand its travel insurance portfolio and grow in global travel and assistance markets.
According to Zurich, the acquisition of Cover-More positions Zurich as a top three global travel insurance provider. The acquisition was made by Zurich Travel Solutions Pty Limited.
The cash consideration (net of the dividend distribution of AUD0.05 per share announced by Cover-More on 27 March 2017) amounts to AUD1.90 per share, approximately AUD722m ($551m) in total. This amounts to approximately AUD741m ($565m) or AUD1.95 per share total consideration gross of the dividend distribution.
The acquisition received overwhelming support from Cover-More shareholders and its Board of Directors and has received the approval of the Scheme of Arrangement by the Federal Court of Australia.
“Travel insurance is a fast-growing industry and Cover-More is a recognised leader in this sector,” said Giovanni Giuliani, group chief strategy, innovation and business development officer, with responsibility for Zurich’s travel business worldwide. “The innovation and capabilities this acquisition brings to Zurich are as important as the new products and services it adds to our portfolio. All of Cover-More’s strengths will be leveraged throughout our business and across our footprint. They will increase our global competitiveness, enhancing our ability to target new customer groups and strengthening our capacity to meet and exceed the needs and expectations of our customers around the world.”
Cover-More will continue to operate as a discrete entity and will retain its brand, said Zurich.
