The Australia and New Zealand Banking Group has announced that it will be selling its New Zealand-based life insurance division.
The insurance business will be sold to US-listed Cigna, the health services firm based in Connecticut.
The deal will be worth NZ$700mn (US$482mn) and is expected to generate NZ$50mn (US$35mn) through on sale gain.
As part of the 20-year long deal, the two firms will form a strategic alliance that will Cigna provide ANZ Bank’s customers with insurance.
Current policy holders will continue with the existing coverage they have with the life insurance unit.
“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,” stated David Hisco, CEO ANZ Bank.
“This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners.”
“This acquisition will enable us to provide broader solutions and be more agile and responsive to a larger customer base,” commented Gail Costa, CEO of Cigna New Zealand.