ANZ SELLS LIFE INSURANCE BUSINESS TO ZURICH

Swiss giant to become Australia’s largest retail life insurer with A$2.85 billion deal

SYDNEY shedding its insurance arm to AIA in recent years as Australia’s top lenders streamline operations.

ANZ said the sale of One Path Life Australia Holdings, subject to regulatory approvals, was another step in its strategy to create “a simpler, better balanced bank focused on retail and business banking in Australia and New Zealand.”

“From the outset we’ve been focused on partnering with a high-quality organisation culturally aligned to ANZ,” said ANZ’s executive wealth Australia chief Alexis George.

“We’re pleased we will be able to provide our customers with access to wealth products from one of the world’s leading and most respected global insurers.”

It described the deal as a good outcome for both customers and shareholders, citing Zurich’s “commitment to innovation and strong presence in Australia”.

All of Australia’s big banks are battling higher funding costs and lower interest margins, with rules now demanding they hold more reserves as a buffer against rising mortgage liabilities and fears over bad loans.

As part of the agreement, ANZ and Zurich will enter into a 20year strategic alliance to offer life insurance solutions through ANZ’s distribution channels.

Following completion of the deal, funded through cash and debt and expected to be finalised late next year, Zurich will be Australia’s largest retail life insurer as measured by in-force premiums, with more than 1.5 million customers, or 19 per cent market share.

The deal comes on the heels of a string of Asia-Pacific acquisitions by the Swiss firm, whose chief executive Mario Greco said it was a good fit for its growth. AFP