Zurich has sold its British funds management company Threadneedle to credit card company American Express – the latest move in the Swiss insurer’s move back to the profitable global general insurance market.

The $850 million sale followed months of negotiations. Threadneedle will still be able to sell investment products via Zurich’s British distribution network.

Zurich CEO James Schiro said the sale “marks yet another step in the implementation of our strategy to re-focus on our core businesses”.

Mr Schiro has set a 2003 target of raising $1 billion in risk-based capital through divestments. He’s well on the way to achieving that, with the May 30 sale of major US operation Zurich Life to Bank One Corporation for $753 million.