Insurer Winterthur is to sell its Austrian insurance and pension fund business as it continues to reshape its insurance portfolio and focus on core markets.
Winterthur said its non-life insurance business was strengthening its presence in the European markets in which it could achieve adequate returns on risk capital employed.
It already ranks as one of the top five non-life insurers in Belgium, Switzerland and the UK and is the seventh largest non-life insurer in Europe.
The company, a subsidiary of the Credit Suisse Group, will sell its Austrian providers of both non-life and life insurance to a subsidiary of Zurich Financial Services, Zürich Kosmos Versicherungen.
Winterthur said Zürich Kosmos would provide "an improved environment for (its) Austria-based units in terms of business activities and strategy".
In Austria, Winterthur's market share in both sectors was below 1%. It said the corresponding contribution to group profit stood at approximately 1%.
The financial details of the deal were not disclosed. It is expected to be concluded, subject to regulatory approval, by the end of January.
