April 8, 2021, 11:31 a.m.
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Zurich – Zurich has taken over the US property and casualty business from Metlife. Zurich and Farmers Exchanges had completed the 3.94 billion acquisition, the Swiss insurance group announced on Thursday evening.
Zurich itself will contribute 2.43 billion to the price through its Farmers subsidiary, which provides services for the Farmers Group and collects fees for them. Farmers paid the remaining 1.51 billion.
The acquisition, announced on December 11, 2020, gives Farmers Exchanges a nationwide presence and access to new sales channels. According to earlier information, the acquisition will make Farmers the sixth largest private customer insurer in the USA. The group makes up one place in this ranking, led by undisputed industry leader State Farm.
Part of the deal with Metlife is also a ten-year distribution agreement. A Metlife platform gives Farmers access to 3,800 US companies and their roughly 37 million employees.
“We are very pleased that the takeover was approved so quickly,” said Zurich CEO Mario Greco in the communiqué. “We expect that the new business will contribute to growth from this quarter onwards (…).” The acquisition should contribute directly to Zurich’s earnings and generate a return on investment of around 10 percent. (awp / mc / ps)
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