Zurich announces the closure of Zurich Life Assurance Company and its sale to Swiss Re
Zurich, August 6, 2003 - Zurich Financial Services Group (Zurich) today announces the closure of Zurich Life Assurance Company (Zurich Life), one of Zurich’s UK life businesses, and its sale to Swiss Re. The transaction values the business at approximately USD 460 million. Approximately
USD 240 million constitutes the cash payment, which will be paid by Swiss Re on completion. The balance of the transaction value will be remitted as dividends to Zurich ahead of completion. Subject to regulatory approvals, the transaction is expected to close by the end of 2003.
Sandy Leitch, Chief Executive Officer of the Zurich Financial Services UKISA/Asia Pacific Business Division, commented, "We are transforming our Life businesses in the UK. This involves sharpening our focus, reducing expenses, strengthening our overall capital position, and growing profitable new business. This transaction contributes to all of those aims. Zurich’s overall business strategy and our commitment to building a powerful Zurich brand in the UK are unaffected by this decision."
Zurich Life’s total annual premiums in 2002 were USD 118 million and new business premiums in 2002 (on an annual premium equivalent basis) were USD 19 million, representing 2% of Zurich's overall new business figures for its UK life business of USD 808 million.
Zurich Life will no longer accept new business with effect from August 27, 2003. Servicing and administration of the closed business will transition to Computer Sciences Corporation, Swiss Re’s third party administrators in 2004. The policy benefits of all existing customers will remain unaffected.
