ZURICH/NEW YORK: Bank One Corp is buying most of US life insurer Zurich Life from Zurich Financial for $500m, taking Europe’s third-largest insurer closer to its goal of restoring full-year profitability.
Analysts welcomed the move, which they said again showed that Zurich was progressing well with its new focus on property and casualty insurance, which are currently seen as the most promising areas of the insurance business. Chicago-based Bank One, the sixth-largest US bank, said it expected the purchase to close in the third quarter, adding that it would contribute four cents a share to earnings in ‘04.

Zurich Financial said it would retain some specialty life insurance assets including Kemper Investors Life Insurance. It valued the assets it would retain at over $500m.
The sale is part of Zurich’s profit-enhancement program, under which the firm is cutting jobs, and trimming the group back to core non-life insurance through a divestment drive aimed at freeing up $1bn in capital for future growth. Bureau Report