Zurich Australia Limited today announced it has entered into an agreement to acquire Macquarie Life’s life insurance business from the Macquarie Group (Macquarie).
The transaction is subject to regulatory and court approvals, and is expected to be completed in the second half of the 2016 calendar year.
Mr Colin Morgan, Zurich’s Asia Pacific Global Life CEO 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.
“This acquisition accelerates that strategy”, said Mr Morgan.
Mr Tim Bailey, CEO of Zurich’s Life and Investments business in Australia, said, “Macquarie Life is a highly regarded business with a strong brand and a well-deserved reputation for excellence in product development and service.
“The acquisition is consistent with our long term strategic intent in terms of our Australian market presence and our overall proposition as an innovative, customer-focussed life insurer.
“The acquisition will enhance both our scale and overall capability and will allow us to further strengthen the proposition which has been a key driver of our recent growth trajectory.
Mr Bailey said an immediate priority would be providing both the staff and customers of Macquarie Life with certainty and continuity.
As part of the agreement, Macquarie Life’s Australian-based staff will transfer to Zurich. Existing Macquarie Life policyholders will ultimately become customers of Zurich, with no change to the terms and conditions of their coverage.
Macquarie Life’s products will continue to be offered to new customers under the Macquarie brand up until the completion of the sale.
Zurich is fully owned by Zurich Insurance Group Ltd, a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia Pacific and the Middle East.
The Zurich Group was founded in 1872 and is headquartered in Switzerland. It employs approximately 55,000 people, serving customers in more than 170 countries. Zurich Insurance Group Ltd is listed on the SIX Swiss Exchange with a current market capitalization of over USD 33 billion (AUD 44 billion).
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 54,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.