Zurich Insurance will pay AU$2.85 billion (around $2.14 billion) for an Australian insurer, the Swiss bank’s largest purchase in the Australian market.
Zurich announced its intent to buy Australia New Zealand Banking Group’s (ANZ) OnePath Life business on Monday. It’s the insurance giant’s third purchase in Australia over the last two years, according to a Reuters report.
The deal will increase cash flows by around $225 million over the 2017-2019 planning period, Zurich said.
As part of the seal, Zurich and ANZ will make a 20-year distribution agreement for the insurer to sell life insurance to the bank’s six million customers. The deal will also make Zurich the largest provider in the Australian life insurance market with about a 19% market share,
Reuters reported.
ANZ has been planning to offload its insurance and wealth division for more than a year, according to the firm.
“This transaction will complete the simplification of ANZ’s Australian wealth business,” ANZ Group Executive Alexis George said in a statement. “However, we will continue to work hard to minimize any disruption to our customers during the transition.
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