Zurich: life insurance portfolio sold in Germany

(CercleFinance.com) - Zurich announced on Friday that it has sold a portfolio of life insurance policies in Germany to Viridium, a move that will ease some of the solvency constraints that have weighed on its shoulders until now.


By selling this closed portfolio, which no longer records new life insurance policies but remains in its accounts, the Swiss insurer intends to reduce the capital intensity of its activities and limit its exposure to interest rate trends.

The deal involves the transfer to Viridium - which specialises in insurance portfolio management - of some 20 billion dollars of net reserves that had to be set aside under prudential rules.

Once completed, the sale is expected to improve its Swiss Solvency Test ratio by about eight percentage points.

The transaction was welcomed by investors on the Zurich stock exchange, where the insurance group's share was up 2.4% in mid-morning trading on Friday.


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