Aflac has announced that its insurance subsidiaries – American Family Life Assurance Company of Columbus (Aflac of Columbus) and American Family Life Assurance Company of New York (Aflac of New York) – have entered into a definitive agreement to acquire Zurich North America’s US corporate life and pensions (group benefits) business.
The transaction is expected to close in the second half of 2020, subject to regulatory approvals and customary closing conditions.
A release said that following the transaction, Aflac of Columbus and Aflac of New York will reinsure on an indemnity basis Zurich North America’s US in-force group life and disability policies. These policies have annualized earned premium of about $115 million. Zurich North America employees of the group benefits business will also transfer to Aflac.
The acquired group benefits business will also be included as a partner within Zurich’s Global Employee Benefits Solutions Partner Network. This allows Aflac to offer employee benefit products to Zurich’s global clients with a US presence.
“We are very excited to acquire the group benefits platform of Zurich North America,” said Aflac US president Teresa White. “This strategic transaction further enhances our value proposition to brokers and employers and aligns with our vision of being the number one distributor of benefit solutions to the US workforce.”
In addition to the group benefits business, Aflac will also acquire other related assets to support the business; the insurer and Zurich have entered into an agreement with Benefit Harbor to transfer the assets and employees of Benefit Harbor Insurance Services to Aflac.
Benefit Harbor Insurance Services is the outsourced platform which supported Zurich North America’s group life and disability business.