Zurich will acquire AIG’s global personal travel insurance and assistance business in a deal worth more than $US600 million ($1.04 billion).

The purchase will incorporate the AIG travel operations, including its Travel Guard brand, under Zurich’s CoverMore business.

Zurich says the deal will strengthen its global capability by expanding its footprint in the US. It anticipates a $US2 billion ($3 billion) increase in annual gross written premium for Cover-More.

“This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions,” Zurich Global Ventures CEO Cara Morton said. “The acquisition expands our retail customer base and aligns with our ambition to continuously enhance our offerings, while providing world-class protection during every step of our customers’ travels.”

A CoverMore Group representative told insuranceNEWS.com.au it is “too early to comment on specifics” regarding the deal’s potential impact on Zurich Australia’s operations. 

“However, we can say that Zurich and Cover-More Group aim to build a stronger, growth-oriented organisation in Australia and globally that benefits from the expertise and dedication of the combined workforce of AIG travel and Cover-More Group,” they said.

The deal is expected to close later this year following regulatory approval.