ANZ New Zealand has announced the sale of OnePath Life NZ Ltd to Cigna Corporation for $700 million.
The bank said in a statement that OnePath Life policyholders in New Zealand will continue to receive the cover they hold under the terms of their policies.
ANZ New Zealand CEO, David Hisco, said a 20-year strategic alliance where Cigna will provide insurance solutions for ANZ bank customers was included in the sale agreement.
“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,” he said.
“This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners,” Hisco said.
ANZ New Zealand also indicated that staff involved would be offered similar roles with Cigna or ANZ and confirmed its Investment Management business is not part of the sale.
Specialist insurance business Cigna, has been providing insurance protection to New Zealanders for a century.
It offers its insurance products online via direct marketing and provides insurance products for partner companies, which has included ANZ for over 20 years.
Cigna New Zealand CEO, Gail Costa, said the acquisition and strategic alliance diversified Cigna’s distribution capabilities: “Cigna provides simple, affordable insurance products to meet the needs of its customers. This acquisition will enable us to provide broader solutions and be more agile and responsive to a larger customer base.”
Expected to complete in FY19, the sale is still subject to regulatory approval.