June 3, 2019
Zurich has confirmed that its acquisition of ANZ’s OnePath life insurance business has been officially completed.
Key elements accompanying this major transition within Australia’s life insurance market, according to Zurich, include:
- The intake of more than 500 staff and management previously employed by ANZ Wealth, who will be joining the Zurich Life and Investments team across Australia
- Ownership of a market share of around 20 percent in retail life insurance and six percent in the Australian group life market
- The commencement of a 20-year agreement for the distribution of life insurance through ANZ’s bank channels
In a release from Zurich’s global headquarters in Switzerland, the insurer notes this 20-year agreement with ANZ Bank will expand Zurich’s Australian bank distribution footrpint by attracting up to six million new customers.
In keeping with its consistent message in the lead-up to the completion of the OnePath sale (see: Business as Usual Message to Advisers…), Zurich has reiterated in a statement that it intends to invest further in the OnePath brand and its OneCare life insurance offering, and that ‘…both the Zurich and OnePath brands and product sets will continue to compete with – and complement – each other in the open market.’
Zurich’s CEO of Life & Investments in Australia, Tim Bailey, noted the insurer’s multi-proposition strategy would allow both customers and advisers to benefit from the breadth of choice offered by two specialist life insurance brands”
…advisers don’t want any further disruption
“Both Zurich and OnePath share a longstanding Australian heritage, with strong brands that are well supported by advisers and customers,” said Bailey, who also advised that he sees continued investment in both the Zurich and OnePath offerings as crucial at a time when advisers are demanding more choice and more innovative ways to meet their clients’ protection needs.
In observing that advisers don’t want any further disruption, Bailey noted that both advisers and customers should expect to notice little, if any, change as a result of the acquisition, with the dedicated infrastructure of both businesses remaining in place.
He said advisers can also expect to see innovation within updated product and service offerings planned to be rolled out across both brands during 2019.
The acquisition also sees a new combined leadership team take effect, comprising senior members from the previous Zurich and ANZ/OnePath teams.