Zurich Financial Services said Wednesday it is selling part of its non-core businesses to reinsurer Swiss Re, which will allow it to unlock and redeploy $1.5 billion (1 billion euros) in capital.
“One of Zurich’s non-core subsidiaries in the UK, Zurich Specialties London Ltd, will transfer its run off insurance business to Swiss Re at book value,” said the Swiss insurer in a statement.
“Zurich will transfer approximately $950 million in gross assets and liabilities to Swiss Re,” it said, adding that these comprised of mainly US and British commercial casualty insurance policies.
The move would allow Zurich to free up and redeploy $1.5 billion in capital and would eventually result in the repatriation of about $360 million from its London subsidiary to the group.
In May, the insurer said its first quarter net profits had slumped 32 percent to $637 million.
Zurich, June 15, 2011 (AFP)
