Zurich Insurance sells its life insurance portfolio in Germany

The insurance company thus reduces the risks associated with interest rates.

Zurich Insurance sells its life insurance portfolio in Germany to Viridium Holding, a company specializing in the management of life insurance portfolios across the Rhine. The insurance company thus reduces the risks associated with interest rates.

The sale includes the transfer of net provisions of $20 billion, Zurich wrote in a statement on Friday. The operation mainly concerns retirement insurance and life insurance taken out for more than five years.

Thanks to this transaction, the company improves its Swiss Solvency Test (SST) score by approximately 8 percentage points. “Minimum interest rate sensitivity reduces the need for capital to hedge against necessity,” says Zurich.

“This is the most important step in our efforts to reduce the capital intensity of legacy portfolios of traditional life insurance policies and reduce our interest rate risk,” said George Quinn, chief financial officer, quoted in the press release.

However, Zurich Germany has decided to invest in products and intends to focus on “profitable growth”, the statement said.

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