Zurich Insurance Group is reportedly planning to sell a portfolio of German life insurance policies that include nearly €20bn ($21bn) of liabilities.
The insurer is currently in advanced talks to divest the portfolio to Viridium Group, Bloomberg reported quoting people familiar with the development. The potential sale may value around €500m.
The official announcement on the divestment may come as early as this week.
However, the sources further told the publication that an agreement is yet to be signed and ongoing talks may not result in a deal. The deal, if signed, would be subject to regulatory approval.
Zurich Insurance declined to comment on the report.
Previously, Cinven’s Viridium acquired Protektor Lebensversicherungs-AG’s life insurance business and Assicurazioni Generali German business Generali Lebensversicherung.
Separately, French insurer Axa is also considering divesting German life insurance assets. Apollo Global Management’s Athora arm is said to have shown interest to acquire the portfolio.
Recent Zurich Insurance developments
In March, Zurich Insurance dropped the letter ‘Z’ from its logo from social media platforms. The step was taken after the letter became a symbol of support for Russia’s invasion on Ukraine.
The insurer has also halted taking on new domestic Russian clients and suspended renewing its existing operations in the country in response to the conflict.