Health insurer Cigna has purchased the life insurance business of ANZ Bank New Zealand (ANZ) for NZ$700 million. It is the second of the banking group’s non-core businesses that it has sold recently. Back in May, ANZ sold a majority stake in a joint venture based in Cambodia to Japan-based J Trust.
According to ANZ, the sale of OnePath Life NZ will provide an approximate gain on sale of $50 million. The sale includes a two-decade strategic alliance through which Cigna will provide health insurance to customers of ANZ bank; it is part of ANZ’s ongoing strategy to simplify its business operations.
“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,” said David Hisco, Chief Executive of ANZ. “This is consistent with how we provide motor vehicle, home, commercial and travel insurance using a range of specialist insurance partners.”