Posted on Jan 3, 2022, 5:29 PMUpdated Jan 3, 2022, 6:00 PM
Zurich Insurance offers itself financial leeway to start the year. On Monday, the Swiss insurer announced the sale of an Italian life and pension insurance portfolio to Portuguese insurer GamaLife – Companhia de Seguros de Vida, a company behind which is the investment fund Apax Partners. A move that comes as many European insurers are reviewing their exposure to traditional life insurance in response to persistently low interest rates.
The operation should allow the group led by Mario Greco to free up 1.2 billion dollars in capital (1 billion euros) and to strengthen its key financial robustness indicator, the “Swiss solvency test”, by 11 percentage points (at 214%). Also supposed to provide $ 200 million in additional liquidity (176 million euros), it is presented as a way for the group to limit its exposure to changes in interest rates and credit risk.