Cover-More’s plan to grow globally will receive a significant lift if it joins the Zurich family, the listed travel insurer says.

The Sydney-based specialist’s board has unanimously backed Zurich’s $741 million offer, which was announced this morning.

As reported in an insuranceNEWS.com.au Breaking News bulletin this morning (see earlier story), Zurich Insurance Company, a subsidiary of Zurich Insurance Group, will acquire all Cover-More’s ordinary shares under a scheme of arrangement.

“If the scheme is implemented, Cover-More will be well positioned to accelerate growth in the global travel insurance market, with access to Zurich’s global platform and strong balance sheet,” Cover-More CEO and MD Mike Emmett said.

“This is an acknowledgement of our expanding global footprint, specialist travel insurance capability and market-leading partnerships in key markets.”

The board has recommended Cover-More shareholders vote for the takeover, in the absence of a superior proposal and subject to an independent expert concluding it is in their best interest.

Zurich will pay $1.95 in cash per share, a 48.3% premium over the travel insurer’s closing share price on Friday.

“This reflects the strategic value of Cover-More’s business, including its strong market position, global distribution footprint and its ability to deliver growth into the future,” Cover-More Chairman Louis Carroll said.

Cover-More is aggressively expanding, especially in the US – the world’s largest travel insurance market.

Last Friday it confirmed Berkshire Hathaway Specialty Insurance (BHSI) has replaced Munich Re’s Great Lakes Australia as its primary underwriter in Australia and New Zealand. Cover-More and BHSI already work together in the US to market online travel insurance.

Cover-More has been underwritten by Great Lakes since 2009.