The deal is part of the $2.85bn sale of ANZ's life insurance business, One Path Life, announced in December last year. The two-tiered transaction includes some $1bn of upfront reinsurance commission and the sale of 100% of OnePath Life.
Having received the reinsurance proceeds, ANZ said it “will continue to work through its capital management options, which may include an additional on-market buyback of $1bn to $1.5 bn.” The plans will be confirmed once an analysis of the various alternatives and requisite approvals has been completed.
Meanwhile, Zurich's acquisition of OnePath Life will make the Swiss insurance giant the leading life reinsurer in the Australian market, with roughly 19% of the Australian retail life insurance market, and 6% of the group life market. As part of the deal, Zurich also inked a 20-year distribution agreement with ANZ in Australia to distribute insurance products via the bank.
