ANZ sells NZ insurance arm as divestment plan rolls on

ANZ is progressing with its divestment plans, offloading a New Zealand insurance business to specialist insurance group Cigna for $645 million.

ANZ New Zealand chief executive David Hisco said the sale of OnePath Life NZ included a 20-year strategic alliance for Cigna to provide insurance advice to ANZ customers, and was consistent with ANZ’s strategy to simplify its business.

The major banks have been selling assets as they refocus their attention on traditional retail banking services following a string of financial advice scandals. ANZ sold its Australian OnePath Life business and some financial planning operations to financial services group IOOF for $975 million last October.

It recently sold its 55 per cent stake in Cambodian joint venture ANZ Royal Bank for an undisclosed sum, and in 2016 sold its retail and wealth business in Singapore, Hong Kong, China, Taiwan and Indonesia.

ANZ still holds minority stakes in three Asian banks to offload as part of its divestment plans.

The bank said it expected to generate a gain on the sale of OnePath Life NZ of about $46 million.

OnePath Life policyholders in New Zealand will continue to receive the cover they hold under the terms of their policies.

The sale of OnePath Life NZ still requires regulatory approval.