Macquarie Group has agreed to sell its life insurance business Zurich Australia for an undisclosed sum.
Macquarie Life insurance business is part of the company’s banking and financial services group.
Under the deal, Macquarie Life’s Australian-based staff will join Zurich, and its policyholders will become customers of Zurich with no change to the terms and conditions of their coverage.
Zurich will provide the Macquarie Life’s products under the same brand name, until the deal concludes.
Macquarie banking and financial services group head Greg Ward said: "The sale of the business reflects the need for significant scale in the capital intensive life insurance industry in order to drive appropriate returns."
Zurich Asia Pacific Global Life CEO Colin Morgan said: "Our Australian life business has experienced strong growth – over the last 5 years in particular – and is a major contributor to the strength and profitability of Zurich’s Asia Pacific regional global life business.
"Our growth ambitions in the Asia Pacific region are underpinned by a strategy which drives value from our balanced portfolio of growth and mature markets and leverages our distinctive capabilities across the region.
Subject to regulatory and court approvals, the deal is expected to complete in the second half of this year.
Based in Switzerland, Zurich Insurance Group provides a range of general insurance and life insurance products and services through its subsidiaries in around 170 countries.
The firm’s customers comprise of individuals, small businesses, and mid-sized and large companies, including multinational corporations.
Image: Zurich to acquire life insurance business from Macquarie Group. Photo: courtesy of Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net.