Zurich, November 22, 2001. - ING Canada and Zurich North America Canada today announced the formation of a strategic alliance aimed at consolidating their leadership positions in the Canadian property and casualty insurance industry.
Under the terms of the alliance, ING will acquire Zurich's Canadian personal and group P&C insurance operations. Furthermore, both companies will leverage their expertise in the commercial and corporate lines, with Zurich renewing the large commercial and corporate policies underwritten by both organisations and ING assuming all other commercial risks. Both companies have also agreed to offer their complete product lines to each other's distributors and customers. As from January 1, 2002, approximately 1000 Zurich employees will become ING employees.
The alliance gives ING and Zurich a combined 15% share of the Canadian P&C market. It consolidates ING's position as a leading insurer in Canada, with a market share of 12%. It also consolidates Zurich's position as the industry leader in the large commercial and corporate lines, with a market share of 21%. About two-thirds of Canadian brokerages will represent the alliance.
As a result of the alliance, ING will increase its insurance premiums by CAD 460 million, to bring total revenues to approximately CAD 2.8 billion next year. Zurich expects its annual non life premiums to reach CAD 550 million in 2002 compared to approximately CAD 1 billion in 2001.
According to Fred Hubbell, Executive Board member of ING Group and chairman of ING Americas, the alliance consolidates ING's leadership position in the Canadian market: "This alliance with Zurich perfectly fits our strategy to increase the scale of our activities in servicing retail clients and to offer a more compelling value proposition".
John Amore, CEO Zurich North America Corporate, said: "The strategic alliance with ING will allow us to focus our activities in a segment of the market where we assume a leadership position and to improve vastly our distribution capabilities. As a result of this transaction we expect a relatively substantial capital release and to improve our financial position."
Certain parts of this transaction and any release of capital are subject to the approval of the regulatory authorities.
Profile Zurich North America Canada
Zurich North America Canada is part of Zurich North America, a business division of Zurich Financial Services Group. It is a leader in the corporate customer market. Zurich has served the Canadian market for more than 75 years and expects its premium volume to reach CAD 1.2 billion in 2001 and currently employs 1,600 people.
For further information please contact:
Zurich Financial Services, Media and PR,
8022 Zurich, Switzerland
Phone +41 (0)1 625 21 00, Fax +41 (0)1 625 26 41
http://www.zurich.com
