The completion of the transaction is anticipated to take place in the second half of this year, subject to regulatory approvals.
The transaction does not change contractual obligations toward policyholders and distributors. Zurich will continue to offer innovative protection and unit-linked solutions to customers in Italy.
"The sale demonstrates our commitment to improve capital utilization across our life back book. The transaction also reduces our exposure to interest rates and credit risks and allows us to focus on the parts of the Italian life and pensions market where we can best serve our customers. We are confident that GamaLife will continue to provide our customers with the same high quality of service that they expect," said Group Chief Financial Officer George QUINN.
"The Italian life insurance and pension market is important for us and the recent acquisition of Deutsche Bank's Italian financial advisor network provides a strong platform for further growth in our preferred products."
"Together with Zurich, we believe this transaction represents strong strategic alignment between GamaLife's focus on sustainable growth and Zurich's intention to exit legacy business in Italy," said Matteo CASTELVETRI, Chief Executive Officer of GamaLife Group.
"We look forward to welcoming Zurich's customers. Our focus will be to ensure a seamless transition for all local stakeholders and to bring our values of innovation, simplicity and service across the enlarged GamaLife group."
The transaction will see approximately USD 9.5 billion of net reserves transferred to GamaLife. On completion of the transaction, Zurich's capital requirement under the Swiss Solvency Test is expected to decrease by approximately USD 1.2 billion, adding approximately 11% to the Swiss Solvency Test ratio. In addition, the transaction is expected to increase the Group's liquidity by approximately USD 200 million.
GamaLife is a pan-European life and wealth management platform, founded in 2019 and backed by funds advised by Apax Partners, focused on technology and sustainability. GamaLife in Portugal, which is regulated by the Autoridade de Supervisao de Seguros e Fundos de Pensoes, held total assets of EUR 3.7 billion and total equity of EUR 233 million as of June 2021 (December 2020: total assets EUR 4.1 billion and total equity EUR 201 million).