Zurich Insurance Group has significantly expanded its global travel insurance operations by acquiring American International Group's (AIG) personal travel insurance and assistance business for $600 million.

The acquisition includes the renowned Travel Guard brand and will be integrated with Zurich's existing travel insurance provider, Cover-More Group. The combined entity will operate under the name "Zurich Cover-More" and relocate its headquarters to the United States.

"This acquisition significantly boosts our travel insurance capabilities and amplifies our global footprint," said Cara Morton, chief executive officer of Zurich Global Ventures. She highlighted that the company aims to "deliver unmatched services and protection to our customers worldwide that go beyond traditional travel insurance and assistance."

The deal positions Zurich as a leading global travel insurer, serving more than 20 million customers across more than 200 distribution partners. The combined business will maintain regional units in Latin America, North America, Asia Pacific, Europe, Middle East, and Africa.

David Fike will lead the new organisation as chief executive officer, with the business retaining several subsidiary brands including Travelex Insurance, Cover-More Travel Insurance, World Travel Protection, Blue Insurance, and Universal Assistance.

The transaction expands Zurich's presence in a global market worth approximately $20 billion in gross written premiums and strengthens its position in the United States market. The acquisition has reduced Zurich's Swiss Solvency Test ratio by five percentage points, though all necessary regulatory approvals have been obtained.

This strategic move aligns with Zurich's broader corporate strategy of transforming insurance offerings and expanding global service capabilities. The company, founded 150 years ago, continues to pursue its goal of becoming one of the most responsible and impactful businesses globally.

Morton noted the growing attractiveness of travel insurance, particularly in the post-Covid landscape. "Since the Covid pandemic, the awareness of travel insurance has really accelerated, and we're seeing high single-digit growth projections," she explained.

The transaction represents another step in Zurich's ongoing expansion strategy, following recent investments such as its majority stake in Kotak General Insurance Company in India and strategic investments in employee benefits firms.

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