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Aflac signs agreement to acquire Group Benefits business

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Christian Fernsby ▼ | March 21, 2020
Aflac Incorporated 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 U.S. Corporate Life and Pensions (Group Benefits) business, which consists of group life, disability and absence management products.
Acquisition   Aflac
Aflac of Columbus and Aflac of New York will reinsure on an indemnity basis Zurich North America's U.S. inforce group life and disability policies with annualized earned premium of approximately $115 million.

Topics: Aflac acquire

Aflac will also acquire assets needed to support the group life and disability business, along with an absence management platform.

Subject to regulatory approvals and customary closing conditions, the transaction is expected to close in the second half of 2020.

It is anticipated that Zurich North America employees dedicated to the U.S. group life and disability business will transfer to Aflac.

In addition, Aflac and Zurich have entered into an agreement with Benefit Harbor LP to transfer the assets and employees of Benefit Harbor Insurance Services, the outsourced platform supporting the group life and disability business of Zurich North America, to Aflac.

Aflac has separately expanded its relationship with Benefit Harbor to provide certain specialized services to group life and disability clients.

No changes are expected in the location of where business activities reside today.