By Olivia Bugault

Zurich Insurance Group AG said Monday that its subsidiary Zurich Investments Life SpA has agreed to sell its Italian life and pension back book to GamaLife in a deal that should release roughly $1.2 billion of capital.

The sale to Portuguese insurer Companhia de Seguros de Vida, SA, also known as GamaLife, should add about 11 percentage points to the Swiss Solvency Test ratio, which would then be at 214% on a pro forma basis, Zurich said. It should also increase liquidity by about $200 million, it said.

"The transaction will see approximately $9.5 billion of net reserves transferred to GamaLife," it said.

The deal is expected to close during the second half of the year, the company said.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

January 03, 2022 01:57 ET (06:57 GMT)

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