ANZ New Zealand has announced its $700 million sale of OnePath Life NZ to Cigna Corporation, a specialist insurance business that has been active in the New Zealand market for 100 years.
ANZ New Zealand CEO David Hisco says the sale includes a 20-year strategic alliance for Cigna to provide insurance solutions to ANZ customers, and that the transaction is consistent with ANZ’s strategy to simplify its business. OnePath Life policyholders in New Zealand will continue to receive the cover they hold under the terms of their current policies, and all currently employed staff will be offered similar roles within either Cigna or ANZ.
The two combined companies will become New Zealand’s third largest life insurance player, with close to 500 staff.
“Cigna provides simple, affordable insurance products to meet the needs of its customers,” Cigna New Zealand CEO Gail Costa said in a statement. “This acquisition will enable us to provide broader solutions and be more agile and responsive to a larger customer base.”
The global health service company has 95 million customers and over 40,000 employees worldwide. It offers insurance products online and through direct marketing in New Zealand, and also provides insurance products for partner companies.
The acquisition has been approved by the boards of both companies and is still subject to final regulatory approval. The transaction is estimated to be completed within six to nine months.