In a strategic move to bolster its travel insurance arm, Zurich Insurance ( ZFSVF ) announced a $600 million deal to acquire the global personal travel insurance and assistance business of American International Group Inc. ( AIG ) .

What Happened: The acquisition, which is expected to be finalized by the end of 2024, will see the AIG business integrated with Zurich’s travel insurance provider, Cover-More Group, expanding Zurich’s presence in the U.S., the company said in a press release on Wednesday.

Following the acquisition, the combined annual gross written premiums for the expanded Cover-More Group are projected to be around $2 billion.

CEO of Zurich Global Ventures, Cara Morton, expressed the company’s commitment to travel insurance, stating, “Travel insurance is a priority for us. This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions.”

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Why It Matters: This acquisition comes on the heels of AIG’s recent move to reduce its stake in Corebridge Financial Inc. and sell 120 million shares to Nippon Life for $3.8 billion. This divestment was part of AIG’s strategy to streamline its operations and focus on its core businesses.

Meanwhile, Zurich’s acquisition of AIG’s travel business is a significant step in expanding its presence in the U.S. and consolidating its position as a leading travel insurance provider globally. This move aligns with Zurich’s strategic focus on strengthening its insurance offerings and expanding its market reach.

Price Action: AIG Inc. stock closed at $74.51 on Tuesday, declining 1.97%. In after-hours trading, the stock rose by 0.94%. Year to date, AIG’s stock has increased by 8.24%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote