ANZ to sell off OnePath Life NZ

In a statement on the ASX, ANZ said it has agreed to sell the New Zealand insurance business for NZ$700 million, representing “a slight premium”.

“Under this agreement, ANZ will continue to provide life insurance to our customers but these insurance policies will now be manufactured and managed by a world-class insurance provider in Cigna,” said ANZ New Zealand chief executive David Hisco.

“This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners.”

OnePath Life policyholders in New Zealand will still have the cover they initially purchased, and ANZ said it is “intended all staff involved would be offered similar roles” upon completion of the sale.

The transaction is still subject to regulatory approval and is not expected to be finalised until fiscal year 2019, and the banks’ New Zealand investment management arm is not included in the sale, ANZ said.