Zurich is set to acquire listed travel insurer Cover-More.

Cover-More’s board has unanimously recommended that shareholders vote in favour of the scheme, which will see Zurich acquire 100% of the issued share capital for approximately $741 million.

The deal fits with Zurich’s ambitions to become a top-three global travel insurance provider.

Zurich sees travel insurance as a fast-growing industry “providing a high-margin, capital-light product with low volatility”.

“The proposed acquisition of Cover-More, which operates globally and is based in Sydney, will see Zurich further strengthening its position and demonstrates its commitment to the Australian market,” CEO of Zurich’s general insurance business in Australia and New Zealand Rajbir Nanra said.

“This acquisition will open up opportunities to explore how we can collaborate with Cover-More to support our local plans in Australia to diversify our product and distribution offering, while staying true to our intermediated broker focus.”

Cover-More will continue to operate as a standalone entity and will retain its brand.

More details in our regular bulletin this afternoon.