Insurance Australia Group Ltd. is transferring 50,000 of New Zealand-based State Insurance Ltd.'s policyholders to Aon PLC as it exits the life insurance business, Insurance Business NZ reported, citing a report from Radio New Zealand.

IAG said it will stop offering life insurance in New Zealand as part of its review of State Insurance products. IAG reportedly assured existing State Insurance policyholders that they would be better supported by Aon and that there will be no changes to the policies.

AIA Group Ltd.'s Sovereign Assurance Co. Ltd. will continue to underwrite State Insurance's existing policies, according to the report.