ZURICH (Reuters) – Zurich Insurance has agreed to sell its Italian life and pensions back book to Portuguese insurance company GamaLife, the Swiss company said on Monday.
The deal will release approximately $1.2 billion of capital and add 11 percentage points to its Swiss Solvency Test ratio, Zurich said. It will also significantly reduce its exposure to credit risk, it added.
In addition, the transaction is expected to increase Zurich’s liquidity by approximately $200 million, Zurich said.
(Reporting by John Revill; Editing by Riham Alkousaa)
