Zurich Insurance Sells Legacy German Life Portfolio to Viridium

Zurich Insurance Group AG agreed to sell a portfolio of legacy German life insurance policies to Cinven’s Viridium Holding AG, the latest transaction in a busy corner of financial dealmaking.

The deal includes the transfer of $20 billion in net reserves, largely related to annuity and endowment products underwritten more than five years ago, Zurich said in a statementFriday. The statement, which confirmed an earlier Bloomberg News report, didn’t disclose the purchase price being paid by Viridium.

After completion of the sale, Zurich’s Swiss Solvency Test ratio is expected to increase by about 8 percentage points, according ...