Australia & New Zealand Banking Group Ltd. unit ANZ Bank New Zealand Ltd. agreed to sell its New Zealand-based life insurance business OnePath Life (NZ) Ltd. to Cigna Corp. for NZ$700 million (US$484.1 million).
The deal represents a slight premium to embedded value to the bank, and is expected to generate a gain on sale of around NZ$50 million. The transaction does not include the bank's investment management business.
The transaction includes a 20-year strategic alliance between ANZ and Cigna, under which Cigna will manufacture and manage insurance products for ANZ bank customers. OnePath Life policyholders will continue to receive the cover they hold under the terms of their policies.
OnePath Life staff are expected to be offered similar roles with Cigna or ANZ, the bank said.
The sale, which is subject to regulatory approval, is expected to be completed in fiscal 2019.
