Zurich Australia acquires Macquarie’s life insurance business

Zurich Australia has entered into an agreement with Macquarie Group, the specialist investment banking and financial services firm, to acquire its life insurance business.

The transaction is expected to be completed in the second half of 2016.

Macquarie Life’s Australian-based staff will transfer to Zurich as part of the acquisition.

Following completion of the transaction, Macquarie Life policyholders will become customers of Zurich, who will honour all obligations under new and existing policies.

Terms of the transaction have not been disclosed.

Greg Ward, head of Macquarie’s Banking and Financial Services Group, said: "Macquarie Life is a well performing business and has been recognised by the industry for its innovation and commitment to customer service. The sale of the business reflects the need for significant scale in the capital intensive life insurance industry in order to drive appropriate returns."

He added: "Zurich’s expertise, global reach and customer focus mean they are ideally positioned to continue providing high quality insurance products and services to Macquarie Life customers.”