11th July ‘08 - Zurich Purchases 50% Stake in Life Insurance Company
Posted on Friday, July 11th, 2008 at 3:41pmZurich Financial Services has bought 50% of general, pension and life insurance company Banco Sabadell. The 50% stake is believed to have cost Zurich 650 million euros, with a series of earn-out payments worth a further 250 million euros expected to follow.
Commenting on Zurich’s investment in the company, Zurich’s chief executive officer commented, “We have always said we wanted to increase our market position in this important market.”
Although Banco Sabadell will continue to own 50% of the company, it will hand over control of management operations for its general, pension and life insurance services to Zurich.
News of the purchase was welcomed by the stock market, with shares in the new general, pension and life insurance partnership rising by 7%.
The acquisition is the largest by Zurich since 2002.
