Zurich Insurance Group, Switzerland’s largest insurer up to date, has successfully completed its acquisition of ANZ’s life insurance business, OnePath Life.

According to a report from Reinsurance News, the acquisition, which values AU $2.85 billion, will allow more than 500 former ANZ employees to become part of Zurich.

Under the said deal, a 20-year agreement was made, which will enable Zurich’s life policies to be sold through ANZ’s bank network. This will allow Zurich to gain access to up to 6 million new customers in Australia via ANZ’s 680 branches and over 2,300 ATMs. The report also states that the transaction enables Zurich to have a market share of about 20% in retail life and 6% in the local group life market.

“Asia Pacific is a key region for Zurich and this deal adds further complementary products and additional bancassurance distribution capacity in the region,” said Mario Greco, Group Chief Executive Officer of Zurich. “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.”

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The transaction was first announced in December 2017, promising Zurich’s potential to become the leading life insurer in Australia. 5 months later, in May of 2018, Zurich has finalised its reinsurance arrangements with ANZ, paying $1 billion of upfront reinsurance commission as the first step in its acquisition.

Tim Bailey, CEO of Zurich Life and Investment, said they are delighted with the deal. “Both Zurich and OnePath share a longstanding Australian heritage, with strong brands that are well supported by advisers and customers.”

He also added that the acquisition will create a new combined leadership team that will include senior members from both previous Zurich and ANZ teams.

“We have been able to assemble a team of leaders who are among the most talented and respected in the industry, and I think the balance of the team sends a powerful signal about our intention and capability to execute our multi proposition strategy.”

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