Zurich Insurance coverage Group AG is in superior talks to promote a portfolio of German life insurance coverage insurance policies to Cinven’s Viridium Group, the most recent transaction in a busy nook of economic dealmaking, individuals accustomed to the matter stated.
The portfolio contains roughly 20 billion euros ($21 billion) of liabilities, in accordance with the individuals, who requested to not be recognized as a result of the knowledge is personal. Zurich may may make an announcement on the deliberate sale quickly as this week, the individuals stated.
An settlement hasn’t been reached and the talks may nonetheless finish with out one, the individuals stated. A sale additionally can be topic to regulatory approval.
The marketplace for again books — or portfolios of previous insurance coverage insurance policies — is among the most energetic in monetary providers because it gives a simple means for insurers to launch capital. They’re usually purchased by personal equity-backed consolidators, which might take out prices and shift among the funds into higher-yielding property.
Zurich’s German unit stated final yr it was on the lookout for an answer for a part of its portfolio of high-interest insurance policies in order that it will possibly give attention to unit-linked merchandise. The property being offered by Zurich embody insurance policies with assured payouts for patrons.
A consultant for Zurich declined to remark additional. A spokesperson for Viridium additionally declined to remark.
–With help from Myriam Balezou.
{Photograph}: A flag flies exterior the Zurich Insurance coverage Group AG’s headquarters in Zurich, Switzerland, on Thursday, Feb. 11, 2016. Picture credit score: Michele Limina/Bloomberg.
Copyright 2022 Bloomberg.
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