Zurich: sale of life portfolio in Germany fails to materialize

(CercleFinance.com) - Zurich Insurance Group announced on Tuesday that the planned sale of its portfolio of life insurance policies in Germany to Viridium could not be finalized as planned.


In a press release, Zurich asserts that it still intends to find a solution to divest itself of this portfolio, and that it plans to study various options to this end.

The Swiss insurer assures that this failure will have no impact on its financial objectives, nor on its plans for capital redistribution.

Viridium - which specializes in the management of insurance portfolios - explained that the transaction could not be completed due to its current shareholder structure, without providing further details.

The company acknowledges, however, that the transaction would have been beneficial for its customers.

Zurich had originally announced the sale in 2022, with the aim of alleviating certain solvency constraints that have weighed on its shoulders until now, in this case some $20 billion in net reserves that had to be set aside under prudential rules.

Listed on the Zurich stock exchange, Zurich shares were down 0.8% on Tuesday morning following this announcement.

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