Both parties expect the transaction, which is subject to regulatory approval, to be completed by the end of 2018.
"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 Chief Executive Officer Mario GRECO.
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. Under this agreement, ZURICH will have access to ANZ's 6 million customers which are served through the bank's more than 680 branches and over 2,300 ATMs, as well as digital distribution channels.
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.
On a pro-forma basis, the operations to be acquired reported net earned premiums for the 12 months ended September 30, 2017 of USD 1.1 billion and a net profit after tax of USD 142 million.
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