It is now formal. Zurich has completed its acquisition of ANZ’s OnePath life insurance business.
Zurich announced completion of the transaction today said that as part of the transaction Zurich’s existing independent financial adviser (IFA) and bank distribution channels in Australia would be broadened by a 20-year agreement with ANZ to distribute life insurance products through bank channels.
It said this cooperation agreement would strengthen Zurich’s business by giving it access to ANZ’s customer base served through more than 630 branches, and additional capabilities in independent distribution channels.
“After this acquisition Zurich will have a market share of around 20 percent in retail life and 6 percent in the local group life market,” the company said.
Commenting on the transaction and its implications, Zurich Group Chief Executive Officer, Mario Greco said the company was strengthening its business in Australia and could now engage with up to six 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,” Greco said.
“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.”
The company said completion of the sale would see Zurich acquire the OnePath brand and product range, along with more than 500 employees who had joined the Zurich Life and Investments team across Australia.
It said that, as had been confirmed, Zurich intended to invest further in the OnePath brand and OneCare life insurance offering, and both the Zurich and OnePath brands and product sets continue to compete with - and complement – each other in the open market.