Zurich Insurance To Sell Its Legacy Traditional Life Insurance Back Book In Germany To Viridium

(RTTNews) - Zurich Insurance Group (ZURVY) has agreed to sell its legacy traditional life insurance back book in Germany to Viridium Holding AG. The deal includes the transfer of $20 billion of net reserves, mainly related to annuity and endowment products underwritten more than five years ago.

Zurich Insurance noted that, on completion of the divestment, its Swiss Solvency Test ratio is expected to increase by approximately 8 percentage points.

"This is, perhaps, the most important step in our efforts to reduce the capital intensity of Zurich's legacy life portfolios and to lower our exposure to interest rates," said CFO George Quinn.