Zurich Insurance Group (Zurich) has announced plans to acquire a portfolio of brokerages in a deal valued at $760m (SFr685.74m).

Zurich’s wholly owned subsidiary, Farmers Group (FGI), will acquire Kraft Lake Insurance Agency, Western Star Insurance Services and Farmers General Insurance Agency.

The US-based FGI is also purchasing the flood programme servicing unit of the Farmers Exchanges, a subsidiary of Zurich.

Zurich expects the acquisition of the brokerages to bolster FGI’s capabilities in supporting the Farmers Exchanges and generate an additional source of income.

As its attorney-in-fact, FGI offers the Farmers Exchanges certain non-claims and auxiliary services.

Zurich made the announcement as part of the update during the first nine months of 2023.

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The Swiss insurer said its property and casualty (P&C) division’s gross written premiums increased by 9% to $34.59bn from $32.08bn in the same period last year.

Zurich attributed that growth to improved premium rates in P&C.

In the first three quarters of 2023, the company’s life insurance unit’s new business premiums surged by 23% year-on-year on a like-for-like basis to $12.16bn.

Growth in the life insurance business was primarily due to the joint ventures with Banco Santander and Banco Sabadell, Zurich said.

High sales of retail savings helped Banco Sabadell in Spain, while unit-linked and short-term protection products helped Banco Santander in Latin America grow business, it added.

Zurich Group CFO George Quinn said: “We maintained momentum in the third quarter, delivering continued top-line growth following a very strong first half of the year and a great start to the new financial cycle. This makes us confident that we will be able to finish the year strongly and achieve our financial targets for 2023–25.”

Last week, Zurich announced its foray into the Indian insurance market by acquiring a 51% stake in Kotak Mahindra General Insurance Company for $488m.

Both the FGI and India deals are subject to regulatory approvals.