Zurich Financial Services Group is closing its Zurich Life Assurance arm to new business and selling...
Zurich Financial Services Group is closing its Zurich Life Assurance arm to new business and selling it to reinsurance group Swiss Re for approximately $460m.
Zurich Life will not accept new business from 27 August 2003 and, as a result of the sale, Swiss Re will be taking on around 225,000 policies from the group.
Daniel Hofmann, head of media and public relations at Zurich, said the reason for the sale is that part of the business has come under margin pressure because of tough market conditions and closing the operation to new business is considered the best option.
Hofmann added the sale will not have any impact on the IFA side of the business and advisers will be redirected to new contacts at Swiss Re.
The policy benefits of existing customers will also remain unaffected. Subject to regulatory approval, the sale is will go through by the end of this year.
Some 90 staff based in Swindon currently run Zurich Life Assurance and around 30 redundancies are expected there as a result of the sale. About half of the team will relocate to Swiss Re and the remainder will be absorbed back into the Zurich business, according to Hofmann.
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