Zurich Financial Services Group has announced the transfer of the “vast majority of its general insurance portfolios in Italy, Portugal and Spain to local branches of its EU-based risk carrier Zurich Insurance plc, Ireland, (ZIP) effective January 1, 2010.”
Zurich said it plans on a further transfer for its general insurance business in Germany later this year. It also noted that the general insurance business in the UK had been transferred to the ZIP UK branch effective January 2009. In addition, most of the Global Corporate division’s business written in the EU has been progressively transferred to ZIP branches since 2005.
Zurich noted that the “transfers are part of an ongoing Group-wide effort to simplify Zurich’s legal structure and consequently achieve greater flexibility in its capital management. For customers nothing will change. They will continue to receive the same high levels of service and protection regarding the conduct of business, in particular in terms of complaint handling and the ability to seek redress through local legal processes.”
Markus Hongler, CEO for Western Europe and Zurich Insurance plc, added: “Upon completion of all transfers, ZIP is expected to generate revenues of about €11 billion [$15.93 billion]. For Zurich as a Swiss-based corporation, a single EU-based risk carrier with branches in the EU member states is both capital and operationally efficient. It enables us to take advantage of the EU single market and regulatory environment.”
Source: Zurich Financial Services – www.zurich.com
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