Zurich, in Cost-Cutting Move, Will Transfer German Legacy Malpractice Book to Catalina

November 7, 2017

Zurich Insurance Group said it will transfer its German legacy medical malpractice book to Bermuda-based Catalina for an undisclosed price.

The portfolio represented $450 million of reserves as of Dec. 31, 2016. Zurich said the transaction reflects its continued focus on managing risk and freeing up capital from non-core operations.

This transaction reduces risk and continues the process of simplifying the Group and releasing capital from non-core activities as communicated on our Investor Day in 2016,” Zurich Group Chief Financial Officer George Quinn said in prepared remarks.

The transaction should have a small positive impact on capital and earnings once it is complete, a process that will be pending regulatory and court approvals.

Catalina is a Bermuda-based group that acquires and manages non-life insurance and reinsurance companies and portfolios in run-off, according to the company’s web site. Zurich Insurance Group, a Zurich, Switzerland-based company, is a multiline insurer with 54,000 employees that does business in more than 2010 countries and territories.

Source: Zurich Insurance Group