Zurich seeks growth in Asia Pacific as it closes A$2.85bn Australian life acquisition
Zurich Insurance Group has completed the acquisition of ANZ’s life insurance business OnePath Life in Australia for A$2.85 billion ($2 billion), becoming the country’s largest retail life insurer.
The acquisition, which was announced in December 2017, is a part of Zurich’s strategy to focus on protection and less capital-intensive savings products. The insurer is looking to build its position in attractive markets while releasing capital from non-core operations.
As part of the transaction, Zurich’s existing independent financial adviser (IFA) and bank distribution channels in Australia will be broadened by a 20-year agreement with ANZ to distribute life insurance products through bank channels.
Zurich will now have a market share of around 20 percent in retail life and 6 percent in the local group life market.
“Zurich is strengthening its business in Australia and we can now engage with up to 6 million new customers with this acquisition of One Path Life and the access to ANZ’s distribution channels. Asia Pacific is a key region for Zurich and this deal adds further complementary products and additional bancassurance distribution capacity in the region,” said group chief executive officer Mario Greco.
“OnePath Life’s retail business, focused on protection and savings products, is perfectly aligned with our strategy in life insurance and should further add to our strong cash remittances,” he added.
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