It’s a done deal.
ANZ has officially agreed to offload its OnePath Life New Zealand business to US insurance giant, the Cigna Corporation. The deal will see Cigna snap up the firm for NZ$700 million (around AU$645 million) which is said to represent a “slight premium” with a gain on sale in the region of NZ$50 million.
As part of the deal, the companies have also signed a 20-year partnership – one that will see Cigna provide insurance policies to ANZ bank customers.
“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,” ANZ NZ chief executive David Hisco said. “This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners.”
It is expected that all staff within the New Zealand life business will be offered “similar” positions – either within Cigna or within ANZ. Cigna NZ chief executive Gail Costa remarked that the deal would allow the firm to “provide broader solutions and be more agile and responsible to a larger customer base.”
