ZURICH TO TRANSFER EAGLE STAR NON-LIFE PORTFOLIO TO RIVERSTONE

Zurich Insurance Group subsidiary Eagle Star is to transfer its remaining general insurance business to RiverStone Insurance (UK), a subsidiary of the Fairfax Group of companies that manages legacy run-off. Eagle Star has been in run-off since 2006. Zurich and RiverStone have also signed a reinsurance agreement which transfers the benefits and risks of Eagle Star's general insurance portfolio (as at July 1 2012) to RiverStone until the closure of the deal. Zurich said this meant $273m of undiscounted gross liabilities would be moved over to RiverStone, "predominantly US asbestos, pollution and health risks written from the mid-1940s to the mid-1980s". The deal will generate a pre-tax gain for Zurich for 2012, and is expected to release $340m of UK capital over two years. Zurich said that the deal was part of its wider strategy to divest non-core operations, thus freeing up some $1.5bn in capital by 2015. Meanwhile, Zurich has had its request to cancel its banking licence approved by the Central Bank of Ireland. Zurich Bank has been renamed Dunbar Assets Ireland. Zurich returned its UK banking licence last year.