Meet Australia’s Largest Retail Life Insurer
Zurich announced that it has entered into an agreement to acquire ANZ’s life insurance businesses, OnePath Life, for $2.14B . As part of the transaction, Zurich will enter into a 20-year distribution agreement with ANZ in Australia to distribute life insurance products through bank channels, which will allow it access to ANZ’s 6 million customers.
“ANZ’s portfolio of non-traditional and profitable retail products fits well with Zurich’s strategy to focus on capital-light protection and unit-linked business. Furthermore, it strengthens the Group’s position in Asia Pacific, while building on our strong bank distribution capabilities. In addition, the existing portfolio provides a highly cash-generative business that will add to our cash remittances, increase our business operating profit after tax return on equity (BOPAT ROE) target by 50 basis points and support dividend growth beyond that implied by our existing plan” – Group CEO Mario Greco.
“Zurich has earmarked the Asia Pacific region to be a major engine of growth in distribution and service capabilities, building on our recent acquisitions of Macquarie’s retail life insurance business and the Cover-More Group. Importantly, we are acquiring a profitable business with loyal customers and a track record of strong, stable cash flows ” – Zurich’s CEO for Asia Pacific, Jack Howell.
As a result of the transaction, Zurich will have an approximately 19% share of the Australian retail life insurance market, positioning it as the market’s largest retail life insurer . It will also have around 6% of the group life market. The agreement complements Zurich’s existing independent financial adviser (IFA) and bank distribution channels in Australia.