Zurich Financial to buy stake in Spanish insurance companies

0 Comments | AFP, April, 2008

ZURICH (AFP) — Swiss insurance group Zurich Financial Services said Thursday that it will buy 50 percent of the life and general insurance companies of Spanish firm Caixa d'Estalvis de Sabadell for 360 million dollars (227 million euros).

In addition, there is an earn-out option of up to 150 million dollars depending on the future performance of the two units.

In 2007, premiums written by the two Spanish companies reached 366 million dollars.

"The transaction represents a high potential growth opportunity for us to expand in one of our key growth areas," said Mario Greco, who is Zurich's chief executive for Global Life Insurance.

© 2008 AFP