Report ZFS May Sell Japanese Operations to AIG

June 23, 2003

Zurich Financial Services is reportedly considering the sale of its personal lines Japanese life and P/C operations to American International Group for around 20 billion yen ($169 million).

An article, which originally appeared in the Asahi Shimbun, as reported by Reuters News Agency, indicated that ZFS was reviewing the possibility of withdrawing from the Japanese market for individual policies in order to concentrate on its European operations, and to further strengthen its capital base.

It’s well on the way to accomplishing that goal. Earlier this month ZFS agreed to sell Threadneedle, its U.K. fund management subsidiary, to American Express for £340 million ($565 million) (See J Website June 16), after selling off its U.S. life business for $500 million and its European fund management operations.

If AIG and ZFS reach agreement, AIG’s Alico Japan would take over some 170,000 life contracts, and American Home Assurance Co would take over the P/C operations, which include a 30 percent share of the Japanese market for mail-order automobile insurance, according to the report.

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