Zurich Insurance buys OnePath Life from ANZ

Monday, 11. December 2017 19:19

A deal worth A$2.85 billion ($2.14 billion) will take Australia and New Zealand Banking Group's unit OnePath Life under the wings of Zurich Insurance Group, the Swiss company announced on Monday. The price includes A$1 billion of reinsurance commissions, expected to be paid in May pending regulatory clearance, the update said and estimated the transaction may be through by the end of next year.

Zurich claimed it is centering its attention on "capital-light protection and unit-linked businesses" with growth in bancassurance and efforts to curb volatility. The European insurance provider said it is acquiring a market share of 19% in the retail life segment in Australia, the biggest in the country, with a 6% stake in the group activities. The takeover of ANZ's division will be funded by existing cash and senior debt, the press release revealed. The two entities also established a 20-year distribution scheme for life insurance through the bank.

"Zurich has earmarked the Asia-Pacific region to be a major engine of growth in distribution and service capabilities, building on our recent acquisitions of Macquarie’s retail life insurance business and the Cover-More Group. Importantly, we are acquiring a profitable business with loyal customers and a track record of strong, stable cash flows," said Jack Howell, its chief executive for the region.

Related Links: Zurich Insurance Group Ltd
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