Zurich has agreed to buy Australia’s largest travel insurer Covermore for an estimated $741 million.
Who is Cover-More?
Started in 1986 in Sydney Covermore has around 40% of the travel insurance market share. In Australia, New Zealand and the United Kingdom, Cover-More travel insurance is underwritten by the Munich Re Group. Zurich Australia. In 2015 the insurer provided cover for 2.2 million travellers.
“The sale of the company at a significant premium to market is an attractive outcome for shareholders,” Cover-More Chairman Louis Carroll said.
Under the transaction, Zurich will acquire 100% of the issued share capital of Cover-More for AUD 1.95 cash per share, with the scheme consideration valuing Cover-More’s fully diluted1 equity at approximately AUD 741 million (USD 554 million)2. The final cash consideration payable to Cover-More shareholders under the Scheme will be reduced by the amount of any interim dividend or special dividend which is announced, declared, or paid by Cover-More prior to the end date of 30 June 2017.
“The proposed acquisition is an excellent fit with Zurich’s strategy for its retail business and should create significant value for the Group. It will further strengthen our position and expertise in the global travel insurance market and support our ambition to expand our distribution partnerships. Through Cover-More’s technology platform, Zurich will be able to attract and serve the needs of retail customers in the growing travel insurance market,” said Jack Howell, Zurich’s Chief Executive Officer of Asia Pacific. “We look forward to welcoming Cover-More into the Zurich Group.”
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 55,000 employees, it provides a wide range of general insurance and life insurance products and services. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, including multinational corporations, in more than 170 countries. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com
About Cover-More Group
Cover-More Group Limited is a specialist and integrated travel insurance, medical assistance and employee assistance provider. The group listed on the Australian Securities Exchange (ASX) in 2013. Cover-More has the leading market position in Australia – with an approximate 40% share of the national travel insurance market and a growing footprint in India and China as well as a presence in Malaysia, Singapore, New Zealand and the United Kingdom and now the United States. Visit https://www.covermoregroup.com for more information.
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