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Zurich Financial Services sells UK fund manager

Date: Mon, 16 Jun 03 Analysis

LONDON, UK - UK fund manager Threadneedle is to be sold by its parent company, the Swiss-based insurance group, Zurich Financial Services, to American Express for $570 million.

The deal underlines Zurich's ongoing strategy to refocus on its core business and return to profitability after several years of financial difficulties.

The sale, which falls somewhat short of the $760 million price tag originally placed on Threadneedle arrives just two weeks after Zurich disposed of most of its United States life insurance business.

The Swiss company, currently Europe's third-largest insurer, has been actively selling off assets following a $3.4 billion loss in 2002.

Over the course of last month it sold most of Zurich Life, one of the top ten US life insurers, to Bank One Corp, and in March it announced the sale of its asset management business in India.

'The sale of Threadneedle marks yet another step in the implementation of our strategy to refocus on our core businesses,' said Zurich chief executive James Schiro.

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