Zurich Financial Services Australia have announced that they will pay $2.85 billion to purchase OnePath Life from ANZ bank in a deal to be completed by late 2018.
Zurich is Europe’s fifth biggest insurer and the OnePath deal follows Zurich’s purchase of Macquarie Life in 2016 and the Cover-More travel insurance group in early 2017.
Following the purchase of OnePath Zurich will have a 19 percent share of the retail life insurance market in Australia. Zurich will also enter into a 20-year agreement to distribute life insurance to ANZ’s six million customers.
Tim Bailey, Zurich Australia Life and Investments Chief Executive, indicated that both brands have strong reputations. “The OnePath/OneCare range and Zurich Wealth Protection range remain core to our plans going forward and we intend to run both of those brands in the open market” said Bailey.
Zurich are looking forward to expanding their customer base. “This deal sees two true insurance specialists come together, and opens up exciting opportunities for us to invest in new ways to make life insurance more relevant more engaging and more accessible to Australians” said Bailey.