The FINANCIAL -- Zurich Insurance Group (Zurich) on November 7 announced that its subsidiary Zurich Insurance plc has entered into an agreement with Catalina Insurance Ireland DAC (Catalina) to transfer its German legacy medical malpractice book to Catalina.
The portfolio concerned represents reserves of approximately USD 450 million as of December 31, 2016.
The transaction, which is subject to regulatory and court approvals, reflects Zurich's continued efforts to manage risk and free up capital from non-core operations, according to Zurich.
George Quinn, Group Chief Financial Officer, said: "The transaction with Catalina is another example of how the Group is actively managing its capital and legacy liabilities. This transaction reduces risk and continues the process of simplifying the Group and releasing capital from non-core activities as communicated at our Investor Day in 2016."
The transaction is expected to have a small positive impact on capital and earnings upon completion.