The Swiss insurer Zurich Insurance has signed an agreement with the German insurance portfolio manager Viridium to sell it life insurance activities in Germany, it announced on Friday.
The sale of these activities, which concerns old contracts, is subject to regulatory authorization, said the insurer in a press release, which did not specify the date on which it hopes to complete the operation, nor its amount. The transaction provides for the transfer of reserves equivalent to 20 billion dollars (19 billion euros) relating to annuities and endowments linked to life insurance products taken out more than five years ago.
This transaction should enable it to reduce its sensitivity to interest rates, explains the Swiss insurer in the press release. The sale of this portfolio of old life insurance contracts in Germany will have a positive impact on its solvency ratios, adds the insurer.