Zurich snaps up all of ANZ's life business

Zurich has entered into an agreement to acquire all of ANZ’s life insurance businesses in Australia for $2.85 billion.

The deal is set to make Zurich Australia’s leading retail life insurer.

“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,” said group CEO Mario Greco.

“In addition, th 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.”

Both parties expect the transaction, which is subject to regulatory approval, to be completed by the end of 2018.